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SNB leaves policy rate unchanged at -0.75%

  
  Analysis
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SNB announces its latest monetary policy decision – 18 June 2020

  • Prior -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.

SNB leaves policy rate unchanged at -0.75%

  
  Uncategorized
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SNB announces its latest monetary policy decision – 12 December 2019

  • Prior -0.75%
  • Sight deposits rate unchanged at -0.75%
  • Remains prepared to intervene in markets if needed
  • Risks to the global economy remain tilted to the downside
  • Franc remains highly valued; FX market remains fragile
  • Willing to intervene in FX market as necessary, while taking overall currency situation into consideration
  • Negative rates and willingness to intervene should counteract attractiveness of the franc and ease upward pressure on the currency
  • 2019 GDP forecast seen at around 1.0% (previously 0.5% to 1.0%)
  • 2020 GDP forecast seen between 1.5% to 2.0%
  • 2019 inflation forecast seen at 0.4% (unchanged)
  • 2020 inflation forecast seen at 0.1% (previously 0.2%)
  • 2021 inflation forecast seen at 0.5% (previously 0.6%)
No key changes by the SNB in their language as they continue to keep rates well in negative territory and reiterated that the Swiss franc remains “highly valued”.
Despite mounting skepticism over its negative rates policy, it doesn’t look like it will come to an end any time soon although the pressure on lenders and the public may still keep the central bank sidelined further for the time being.
That said, if trade risks materialise and the global economy suffers a more profound slowdown next year, it’s only a matter of time before they will have to step in and take action.
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