SNB kept policy rate and interest on sight deposits at -0.75% as widely expected. It remains “willing to intervene in the foreign exchange market as necessary”. It reiterated that the Swiss franc is “highly valued”. The “expansionary monetary policy provides favourable financing conditions, contributes to an appropriate supply of credit and liquidity to the economy, and counters upward pressure on the Swiss franc.”
The new condition inflation forecasts are revised slightly higher to 0.4% in 2021 (from 0.2%), 0.6% in 2022 (from 0.4%) and 0.6% in 2023 (from 0.5%). 2021 GDP forecast was also revised up to 3.5%, “primarily attributable to the lower-than-expected decline in GDP and the first quarter”. GDP is “likely to return to its pre-crisis level by the middle of the year”.
