SNB Vice President Antoine Martin conveyed a cautious stance on future monetary policy in an interview with Le Temps.
While SNB indicated at its September meeting the readiness to cut interest rates further, Martin stressed that “it’s not useful for central banks to lock themselves into forward-looking communications.”
He highlighted that “between now and the next decision, there may be changes in conditions that render current communications invalid,” This approach means SNB has made “absolutely no commitment” to a specific policy path.
Addressing the performance of Swiss Franc, Martin noted that its development this year has been “neither particularly surprising nor exceptionally problematic.”
He explained that due to the inflation differential between Switzerland and other countries, SNB expects Swiss Franc to “appreciate structurally over time in nominal terms.”
However, he pointed out that “in real terms, excluding the inflation effect, the appreciation has been limited.”
