Speaking in Geneva
- Swiss franc still remains significantly overvalued
- SNB remains willing to intervene on the foreign exchange market where necessary
- The situation on the foreign exchange market has not yet normalised
- SNB intervened in markets following Greek referendum announcement in summer
- Future SNB losses may occur with expansion of balance sheet
- Economic conditions remain challenging in Switzerland
- Temporary negative inflation still undesirable
- Medium-term price stability is not in doubt
- SNB inflation average 0% for 2014, forecasting -1.2% 2015 and -0.5% for 2016
- Inflation for 2015 negative due to abandonment of floor and drop in oil prices
- SNB believes economy has returned to a moderate path of recovery, although significant
- downside risks remain
- SNB forecasts GDP to grow by close to 1% this year, despite Q1 contraction
- Swiss GDP is now nearly 8% above its pre-crisis peak
- Applying the negative interest rate broadly allows it to function effectively
- Negative interest rates reduce relative attractiveness of Swiss franc
- Mortgage rates have not fallen to the same extent as interest rates on money and capital
- markets
- SNB expects the global economy to grow moderately in the coming years
- The size of the SNB's balance sheet reflects our monetary policy measures
Pretty standard fare from the SNB
