SNB leaves policy rate unchanged at -0.75%

SNB announces its latest monetary policy decision – 17 December 2020

  • Prior¬†-0.75%
  • Sight deposit interest rate unchanged at -0.75%
  • Swiss franc is highly valued
  • Will remain active in FX market as necessary
  • Expansionary policy provides favourable financing conditions
  • Also counters upward pressure on Swiss franc
  • Sees inflation this year at -0.7%, 2021 at 0.0%, 2022 at +0.2%
  • Assumption is there will not be significant easing on virus measures until spring
  • Recovery thus remains incomplete
  • Global economy is still subject to high uncertainty
  • Full statement
No change to the language on the franc or on intervention, and a slight downgrade to its inflation outlook for this year and next. That’s about it from the SNB, in what is a rather non-event really as they reaffirm a similar stance to September.