Swiss Quarterly Monetary Policy Review

June 14, 2019

The Swiss National Bank’s quarterly monetary policy review yesterday left the expansionary stance unchanged. Viewing their currency to be overly pricey, officials remain prepared to intervene against excessive appreciation on a discretionary basis as appropriate. The 3-month sight deposit target remains negative 0.75% as defined by a -1.75 to -0.25% 3-month LIBOR corridor. However, officials in a released statement introduced a new SNB policy rate, which also is -0.75%. The interest rate benchmark has been at that level since January 2015 when automatic intervention and a 1.26 franc per euro parity was abandoned. Swiss officials revised inflation forecasts, which as always are conditional upon an unchanged monetary policy, by 0.1 percentage point to 0.7% in 2020 but lowered the projection for 2021 by a similar increment to 1.1%.

Copyright 2019, Larry Greenberg. All rights reserved. No secondary distribution without express permission.



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