SNB leaves policy rate unchanged at -0.75%

SNB announces its latest monetary policy decision – 24 September 2020

  • Prior -0.75%
  • Sight deposit interest rate unchanged at -0.75%
  • Swiss franc is highly valued
  • Ready to step up intervention in FX market as necessary
  • Expansionary policy is necessary to ensure appropriate monetary conditions
  • Inflation outlook is subject to unusually high uncertainty
  • Sees inflation this year at -0.6%, 2021 at +0.1%, 2022 at +0.2%
  • Full statement

As expected, more or less a non-event as the SNB reaffirms their pledge to intervene in the market and to limit any significant appreciation in the franc. Given their outlook on inflation, one can expect continued interventions until the recovery looks less fragile.