SNB chief, Thomas Jordan, with further comments
- Swiss economic conditions speak for a continuation of current monetary policy
- Interest rate differential remains a very important factor for exchange rates
- That is why we have to take international conditions into account
- Negative rates will remain as long as necessary
- We have no interest to keep negative rates if they are not necessary
- We will change policy stance if inflation outlook changes
Well, if he's referring to core inflation then yes it is not in negative territory but otherwise:
Headline annual inflation certainly is. In any case, the inflation outlook for next year doesn't look like it will get any better so they are basically pushed to the limit right now.
If they keep up with cutting rates deeper into negative territory, it risks straining financial institutions and eventually consumers even more. But if they do nothing, they'll never be able to dig themselves out of this hole.
