Swiss National Bank will enforce cap on franc of 1.2000
No change in peg then, shock horror!!
EUR/CHF slips below 1.2100, presently at 1.2090.
- Prepared to buy fx in unlimited quantities
SNB 3-month libor band 0.0%-0.25%, unchanged and as expected
- Will keep money market liquidity extraordinarily high
- No risk of inflation in Switzerland
- SNB does not see inflation approaching 2% price stability threshold for entire forecast horizon
- Ready to take further measures at any time if the economic outlook, risk of deflation so require