January 22, 2025 at 09:39AM
Inflation is well inside our target range and over our forecast cycle
Not uncomfortable with inflation at the moment
But cannot exclude possibility of negative interest rates
If we have to do it, we will
Swiss franc is traditionally treated as a safe haven
Trade conflicts are not beneficial for Switzerland
Ready to intervene in FX market if necessary
Another currency cap is not something we are discussing
The challenge for the SNB now is to rein in the strength of the franc currency. The inflation picture looks to be well in control but rate cuts are still in consideration in trying to manage the exchange rate.
This article was written by Justin Low at www.forexlive.com.
SNB’s Schlegel: We cannot exclude negative interest rates