SNB leaves policy rate unchanged at -0.75%, as expected

SNB announces its latest monetary policy decision – 25 March 2021

  • Prior -0.75%
  • Sight deposit interest rate unchanged at -0.75%
  • Swiss franc remains highly valued
  • SNB will remain active in foreign exchange market as necessary
  • Pandemic continues to have strong adverse effect on the economy
  • Sees 2021 inflation at 0.2% (previously 0.0%)
  • Sees 2022 inflation at 0.4% (previously 0.2%)
  • Sees 2023 inflation at 0.5%
  • Expects Swiss GDP growth of 2.5% to 3.0% for 2021
  • Activity likely to return to pre-crisis levels in 2H 2021
  • Both inflation and growth outlook still subject to high uncertainty
  • Full statement

All in all, the key words are all similar to the December statement – particularly their stance on the Swiss franc and the willingness to intervene in the market. Given that inflation is likely to keep more subdued, don’t expect any change from the SNB still for now.
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