SNB's Schlegel: Will continue to monitor inflationary pressure and will adjust monetary policy if necessary
|Swiss National Bank (SNB) Chairman Martin Schlegel is speaking at the post-policy meeting press conference, explaining the reason behind the surprise rate cut move.
Key quotes
Will continue to monitor inflationary pressure and will adjust monetary policy if necessary to maintain price stability.
Without today's cut, inflation forecast would have been lower.
Inflation since last rates decision has been lower than expected.
Uncertainty about future inflation path is still high.
Inflationary pressure has decreased markedly over medium term.
Development of Swiss Franc is still important factor.
With monetary easing we are countering the lower inflationary pressure.
SNB remains willing to intervene in forex markets as necessary.
Rate cuts continue to be the main instrument if monetary policy needs to be eased further.
Central bank still has room for further interest rate moves.
This step is intended to stabilise inflation between 0 and 2%.
We can tolerate a weakening of inflation below 0-2% target range, as long as it is temporary
We take into consideration what other central banks are doing, but the focus is on Switzerland.
The SNB does not like negative interest rates.
The likelihood of negative interest rates has become small.
Market reaction to SNB Schlegel’s comments
As of writing, USD/CHF is consolidating the rebound to near 0.8900, adding 0.42% on the day.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.