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SNB Sees Downside Risks as It Keeps Crisis Policy Settings

  • Franc has rallied since hitting 1.20-per-euro low in April
  • Central bank lowered inflation forecast for 2019 to 0.5%
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Jordan sees "no reason" to change monetary policy.Source: Bloomberg
Updated on

The Swiss National Bank cut its inflation forecast and showed no inclination of moving off its crisis-era settings, citing the franc’s strength and mounting global risks.

Investor anxiety about Italian politics, trade tensions and Brexit has put upward pressure on the franc in recent months, dragging it further away from its April low against the euro. Highlighting those risks on Thursday, the SNB repeated its much-used phrase that the situation remains “fragile” and maintained its currency intervention threat.