SNB lowered inflation forecast in 2019 by 0.1% to 0.8% today. For 2020, inflation is projected to be at 1.2%, sharply lower than prior forecast of 1.6%. Some economists take that signals that SNB will wait a long time to change its monetary policy. And the first rate hike could be postponed towards 2020. That is, SNB could wait some more time after ECB starting to raise interest rates beyond summer 2019.
SNB Chairman Thomas Jordan told reports that “the franc has appreciated, which has also led to a tightening of monetary conditions.” And, “that is also the main reason why our monetary policy must remain expansive.”
