SNB leaves policy rate unchanged at -0.75%

SNB announces its latest monetary policy decision – 18 June 2020

  • PriorĀ -0.75%
  • Sight deposit interest rate unchanged at -0.75%
  • Remains willing to intervene more strongly in the FX market
  • Will remain active in the FX market as necessary
  • Swiss franc remains highly valued
  • Sees inflation this year at -0.7%, 2021 at -0.2%, 2022 at +0.2%
  • Anticipates that there will only be a partial recovery for the time being
  • Estimates that overall GDP is likely to contract by 6% this year
  • Full statement
Pretty much as good a non-event as can get as the SNB keeps policy unchanged and maintained that they will keep intervening strongly to limit the appreciation of the Swiss franc – as they have been doing over the past few months already.
They revised lower their inflation outlook, which reaffirms the notion that monetary policy is going to stay accommodative as it is now for the next few years at the very least.