The SNB announces its 20 September 2018 monetary policy meeting decision

SNB
  • Prior -0.75%
  • 3-month Libor lower target range -1.25%
  • 3- month Libor upper target range -0.25%

Here's the statement details:

  • Will remain active in the FX market as necessary
  • Says that Swiss franc is highly valued
  • Situation in the FX market is still fragile
  • Sees 2018 growth at 2% to 2.5% (previously 2%)
  • Sees 2018 inflation at 0.9% (unchanged)
  • Sees 2019 inflation at 0.8% (previously 0.9%)
  • Sees 2020 inflation at 1.2% (previously 1.6%)
  • Economic signals for the coming months remain favourable
  • Negative rates and SNB's willingness to intervene in FX market remains essential
  • Sees inflation rising to 2% in Q2 2021
  • Following strong growth in previous quarters, pace expected to slow slightly

No changes to the language in the Swiss franc but there is a slight moderation in inflation forecasts moving forward as well as a mention of slower growth to come. A dovish tilt on economic expectations but nothing to derail a rate hike to come once the ECB begins doing so.

But the key here is that they did not verbally attempt to weaken the swissie and they've also shown a lack of willingness in recent months to intervene too. That could set up the swissie for further gains in the medium-term.