Swiss National Bank Leaves Negative Rates Unchanged, Lowers Inflation Forecasts

The Swiss National Bank kept negative interest rates unchanged at -0.75% for sight deposits. The SNB announced Weaker inflation forecasts matching moves by the ECB. Shows a long way from normalising policy and linked to the ECB actions.

The Swiss National Bank kept negative interest rates unchanged at -0.75% for sight deposits. The SNB announced Weaker inflation forecasts matching moves by the ECB. Shows a long way from normalising policy and linked to the ECB actions.

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 2019

  • 2019 GDP growth forecast seen at 1.5% (unchanged)
  • 2019 inflation forecast seen at 0.3% (down from 0.5% in December)
  • 2020 inflation forecast seen at 0.6% (down from 1.0% in December)
  • 2021 inflation seen at 1.2%
  • Global risks are still to the downside
  • Central bank makes downward revision to its growth outlook for advanced economies
  • Swiss franc remains highly valued
  • Situation of FX market continues to be fragile
  • Prepared to intervene in markets if needed

Source: SNB

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