Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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In keeping policy unchanged, the SNB continue to signal to markets that they will look through deeply deflationary conditions and that the bar to further rate cuts is high – despite the Committee stressing that it remains an option. Instead, it seems the SNB will continue to rely on FX intervention to defend against financial market fragmentation and the continued use of the negative rate exemption thresholds to shield the domestic banking sector against the pitfalls of negative interest rate policy.
The SNB made only minor revisions to their inflation forecasts, seeing a deeper decline in CPI, followed by higher snapback in the second quarter of next year. Nonetheless, their expectation for when Switzerland will return to positive inflation was left unchanged.
Figure 1: SNB retain expectation that CPI will turn positive in Q2 2021
Source: Swiss National Bank / MNI
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.