SNB Chairman Promises to Keep Monetary Policy Unchanged

SNB chairman Jordan said to keep rates negative as long as the economy and inflation remain weak

Written by: Skerdian Meta • Thursday, December 12, 2019 • 1 min read

• Last updated: Thursday, December 12, 2019

The SNB will remain accomodative for quite some time

Swiss National Bank chief, Thomas Jordan, was holding a press conference after the SNB held its monthly meeting. They decided to keep interest rates unchanged at -0.75% and keep the monetary policy unchanged, as long as economic conditions remain unchanged. Below are some of his main comments:

Swiss inflation would turn negative if we tightened monetary policy
Swiss economic conditions speak for a continuation of current monetary policy
Interest rate differential remains a very important factor for exchange rates
That is why we have to take international conditions into account
Negative rates will remain as long as necessary
We have no interest to keep negative rates if they are not necessary
We will change policy stance if inflation outlook changes

Well, if he’s referring to core inflation then yes it is not in negative territory. But the headline annual inflation certainly is. In any case, the inflation outlook for next year doesn’t look like it will get any better so they are basically pushed to the limit right now. There wasn’t much action in the CHF pairs after those comments.

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Skerdian Meta

Lead Analyst

Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.