The SNB announces its 13 December 2018 monetary policy meeting decision
- Prior -0.75%
- 3-month Libor lower target range -1.25%
- 3-month Libor upper target range -0.25%
Slight delay in the announcement by the source. Here's the statement details:
- Will remain active in the FX market as necessary
- Swiss franc is still highly valued
- Situation in FX market continues to be fragile
- Negative rates, intervention pledge remain essential
- Sees 2018 GDP at about 2.5%, 2019 GDP at about 1.5%
- Sees 2018 inflation at 0.9%, 2019 inflation at 0.5%, 2020 inflation at 1.0%
- Risks to Swiss and global growth are on the downside
- Protectionism and political uncertainties among those risks
Of note, they lowered the 2019 and 2020 inflation forecasts; previously was 0.8% and 1.2% respectively. Other than that, the key item is that they left the language on the Swiss franc unchanged and continues to view the currency as 'highly valued'.
Nothing much else from the statement here. Jordan's presser is to come at the top of the hour, but is expected to reiterate the above points. In short, status quo for the SNB here. EUR/CHF still sits at 1.1292 more or less unchanged for the day.
