Large downward revisions to the Swiss National Bank’s inflation forecasts

Fresh inflation projections likely to keep the central bank on the path of prudence.

The Swiss National Bank (SNB) left its monetary policy unchanged at its quarterly meeting today.

The main policy rate was left at a record low (-0.75%) and the central bank reiterated its currency intervention pledge.

Importantly, the SNB’s inflation forecasts for 2019 and 2020 were significantly revised down—another argument for the SNB to remain cautious and wait for the European Central Bank to start hiking its own policy rates.

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