The usual from Jordan in the text of his Jackson Hole speech
- Aim of SNB's policy of negative rates, willingness to intervene in FX market, is to weaken franc over time
- Current monetary policy also factors in suboptimal inflation, advises caution in trying to stabilize price developments in short term
- Inflation expectations still well anchored, suggesting SNB's commitment to medium-term price stability is credible
Central bankers love to point to inflation expectations but for the past 20 years the BOJ has missed its target and inflation expectations remained high throughout.
