December 12, 2024 at 09:01AM
Without today’s rate cut, inflation forecast would have been lower
Will continue to monitor inflationary pressures
And will adjust monetary policy if necessary to maintain price stability
Remains willing to intervene in FX market as necessary
Rate cuts will continue to be the main instrument if monetary policy needs to be eased further
Developments abroad are the main risk to the Swiss economy
Political uncertainty in Europe has risen
Future course of US economic policy is uncertain
Development of the Swiss franc is still an important factor to be wary about
Given the fact that they lowered their inflation forecasts, it will be crucial to watch how the Swiss franc performs going into next year. The last thing the SNB would want is to invite deflationary pressures again. That especially since the Covid pandemic gave them a get out of jail free card, much like it did for Japan.
This article was written by Justin Low at www.forexlive.com.