• We always make brave decisions regarding the mandate
  • Our decisions are independent of what other central banks do
  • We give no forward guidance on future interest rates, we will see where we are in 3 months' time
  • Rate cut today is 100% compatible with our framework

The franc has retraced some of the sharp drop from earlier but remains the weakest performer so far today. The risk to arguing for a steeper decline in the currency is that the SNB might feel the need to step in, if need be. They were active to sell foreign currencies to prop up the franc (in order to pin down imported inflation) last year. And now that the pace of their directive has changed, a weaker currency could also be reason enough to intervene again.