Easing of monetary policy possible because fight against inflation has been effective

Following the decision to lower the policy rate to 1.50%, Swiss National Bank (SNB) Chairman Thomas Jordan said that the “easing of monetary policy was possible because fight against inflation has been effective.”

Key quotes

Inflation is likely to remain in target range over the next few years.

See lower second round effects from inflation.

Uncertainty still elevated, will adjust policy again if necessary.

Price momentum has slowed more quickly than expected in December.

Swiss growth likely to remain modest in coming quarters.

Weak foreign demand and Franc appreciation has had dampening effect.

Remain willing to be active in forex market as necessary.