- It is not useful for central banks to lock themselves into forward-looking communication
- Between now and the next decision, there may be changes in conditions that render current communication to be invalid
- SNB had made "absolutely no commitment" to its next course of action
- Everything will depend on conditions when we assess the situation in December
- Expects franc to structurally appreciate over time amid inflation differentials i.e. low Swiss inflation
- In real terms, franc appreciation has been more limited
It's a bit of a curveball but I reckon he just doesn't want to get markets into thinking that they will be cutting rates back to zero. The current policy rate stands at 1.00% and they should perform another 25 bps rate cut in December. In large parts, that is also to manage expectations surrounding the Swiss franc currency. As for next year, we'll have to wait and see.
