- The SNB leaves monetary policy rates unchanged at -0.75% in its quarterly policy review on Thursday.
- The decision does little to sway the Swiss franc or give USD / CHF a boost.
The Swiss National Bank (SNB) announced its latest monetary policy decision this Thursday and has left its demand deposit interest rate unchanged at -0.75%.
Statement summary:
The Swiss franc is highly valued.
The SNB will remain active in the foreign exchange market as required.
Follow willing to intervene in the foreign exchange market as needed, taking into account the general situation of currencies.
Despite the recent weakness, the Swiss franc remains highly valued.
With a view to stabilizing economic activity and price developments, the SNB maintains its expansionary monetary policy.
The inflation forecast it now stands at 0.2% for 2021, 0.4% for 2022, and 0.5% for 2023.
The conditional inflation forecast is based on the assumption that the monetary policy rate of the SNB remains at −0.75% throughout the forecast horizon.
The SNB continues to expect GDP growth of 2.5% to 3% by 2021.
Therefore, activity is likely to return to its pre-crisis level in the second half of the year.
Production capacity will remain under-utilized for some time.
In the current situation, both the inflation and growth prospects for Switzerland and abroad remain highly uncertain.
A further fall in GDP is expected for the first quarter of 2021.
.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
