SNB's Schlegel: Will continue to monitor inflationary pressure and will adjust monetary policy if necessary

Swiss National Bank (SNB) Chairman Martin Schlegel is speaking at the post-policy meeting press conference, explaining the reason behind the surprise rate cut move.

Key quotes

Will continue to monitor inflationary pressure and will adjust monetary policy if necessary to maintain price stability.

Without today's cut, inflation forecast would have been lower.

Inflation since last rates decision has been lower than expected.

Uncertainty about future inflation path is still high.

Inflationary pressure has decreased markedly over medium term.

Development of Swiss Franc is still important factor.

With monetary easing we are countering the lower inflationary pressure.

SNB remains willing to intervene in forex markets as necessary.

Rate cuts continue to be the main instrument if monetary policy needs to be eased further.

Central bank still has room for further interest rate moves.

This step is intended to stabilise inflation between 0 and 2%.

We can tolerate a weakening of inflation below 0-2% target range, as long as it is temporary

We take into consideration what other central banks are doing, but the focus is on Switzerland.

The SNB does not like negative interest rates.

The likelihood of negative interest rates has become small.

Market reaction to SNB Schlegel’s comments

As of writing, USD/CHF is consolidating the rebound to near 0.8900, adding 0.42% on the day.