Following the Swiss National Bank (SNB) decision to reduce the policy rate for the second consecutive meeting, Chairman Thomas Jordan speaks on the inflation and policy outlook during the post-policy meeting press conference on Thursday.
Key quotes
Underlying inflation pressure has decreased.
Swiss Franc has significantly increased in past weeks.
Swiss inflation driven by prices for domestic services.
We will continue to monitor inflation development closely, adjust policy if necessary.
SNB willing to be active in forex markets as necessary.
Political risks add to uncertainty about inflation.
Franc appreciation due to political uncertainties.
We do not give any forward guidance regarding interest rates.
Will adjust policy rate to ensure inflation rate stays in range of price stability.
We will go forward looking at inflationary pressure.
The exchange rate plays a very important role, has an influence on inflationary outlook.
There is appreciation of Swiss Franc, that has an impact on monetary conditions.
Forex interventions can be in both directions.
The Franc plays an important part in monetary conditions.
We take into account the exchange rate when calculating our inflation forecasts.
Our main instrument is the SNB policy rate and can, when necessary, be active on the forex market.
Inflation is the mandate for the SNB, focus is on price stability.
Market reaction to SNB Jordan's comments
As of writing, USD/CHF is holding the rebound near 0.8900, adding 0.61% on the day.
