SNB leaves the key sight deposit rate on hold at -0.75%

The SNB is maintaining its expansionary monetary policy.

It is thus ensuring price stability and supporting the Swiss economy in its recovery from the impact of the coronavirus pandemic.

Remains willing to intervene in the foreign exchange market as necessary, in order to counter upward pressure on the Swiss franc.

In so doing, it takes the overall currency situation into consideration.

The Swiss franc remains highly valued.

SNB’s new conditional inflation forecast for 2021 and 2022 is slightly above that of September.

In the longer term, the inflation forecast is virtually unchanged compared with September.

The new forecast stands at 0.6% for 2021, 1.0% for 2022, and 0.6% for 2023.

The conditional inflation forecast is based on the assumption that the SNB policy rate remains at −0.75% over the entire forecast horizon.

In its baseline scenario for the global economy, the SNB assumes that extensive containment measures will not have to be introduced again, this despite the adverse developments regarding the pandemic at present.

Expansive monetary policy supports Swiss economy's recovery from consequences of pandemic.

Economic recovery should thus continue, albeit somewhat subdued.

Supply bottlenecks are likely to persist for some time yet, leading to price increases for the goods concerned.

This situation is likely to ease over the medium term, however, with inflation abroad dropping back to more moderate levels.

GDP is likely to grow by around 3.5% this year.

 in its baseline scenario for Switzerland, the SNB anticipates a continuation of the economic recovery next year.