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9/19, 9:31 AM (Source: TeleTrader)
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SNB maintains rates, cuts GDP, inflation outlook

The Swiss National Bank left on Thursday both its interest on sight deposits and the policy rate at 0.75% under the neutral level. Policymakers led by Chairman of the Governing Board Thomas Jordan stuck to their assessment that expansionary policy is necessary. They said the foreign exchange market "continues to be fragile" and that "the Swiss franc is still highly valued," but also added it has "appreciated" on a trade-weighted basis.

The second point in the formulation has been used since September 2017 as the currency weakened to more than 1.1 per euro, until when it was seen as "significantly overvalued." The dollar and the joint currency both rose more than 1% versus the Swiss franc in the month before today's update. The central bank said it would raise the exemption quota for domestic sight deposits. The inflation projection for this year was slashed to 0.4% from 0.6% and decreased by half a percentage point for 2020 and 2021 to 0.2% and 0.6%, respectively. Growth is seen at 0.5% to 1% for 2019 compared to 1.5% prior.

The dollar slipped 0.34% at 9:34 am CET to 0.99403 Swiss francs and the euro was 0.23% down at 1.09756. The Swiss franc was up 0.35% at ¥109.04 and the pound dropped 0.37% against the Swiss counterpart to 1.2394.

Breaking the News / IT