• Swiss inflation is moderate, likely to decline in foreseeable future
  • Higher inflation abroad and stronger Swiss franc cancel each other out
  • SNB does not react mechanically to every case of upward pressure on the franc

Much like the BOJ, the SNB is in no position whatsoever to move away from its current policy stance. The fear is that it will spark an unwanted wave of strength in the franc, which will depress inflation prospects even more so than it is looking now.