Central Banks

Google Ad

The Swiss National Bank kept negative interest rates unchanged at -0.75% for sight deposits. The SNB made no key changes in their language as they continue to keep negative rates and reiterated that the Swiss franc remains "highly valued".

Swiss National Bank

SNB announces its 21 March 2019 monetary policy decision

Interest Rates

  • Sight Deposits -0.75% UNCH
  • 3-month Libor lower target range -1.25%
  • 3-month Libor upper target range -0.25%

Statement Highlights December 2019

  • 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%)

SNB Chief Thomas Jordan Press Conference

  • Without negative rates, the franc would appreciate rapidly
  • Franc is scarcely changed on a trade-weighted basis this year
  • Trade tensions, geopolitics continue to weigh on global economy
  • Sees modest momentum in global economy in the short-term
  • But global risks remain tilted to the downside
  • SNB easing policy to boost medium-term inflation, growth Inflation expectations are within 0% to 2% range
  • Reaffirms their current policy stance by saying that the benefits of NIRP "clearly outweighs" the costs.

Source: SNB

From The TradersCommunity News Desk

Log in to comment
Discuss this article in the forums (0 replies).