SNB's Jordan Says No Rate Hike for 'Relatively Long Time'

The transcript discusses the Swiss National Bank's (SMB) monetary policy, focusing on maintaining negative interest rates and the willingness to intervene in foreign exchange markets. It highlights the overvaluation of the Swiss franc and its impact on inflation forecasts. Despite a slight increase in inflation expectations for 2020, the SMB does not foresee an immediate need to adjust monetary policy. The transcript also explains the concept of conditional inflation forecasts and emphasizes the continuation of the current monetary policy due to low inflation pressure and a small interest rate differential with the Eurozone.

What is the primary reason for the SNB maintaining negative interest rates?

• To reduce the trade deficit

• To stabilize the Swiss franc's value

• To encourage foreign investment

• To increase inflation rapidly

What does the SNB consider when deciding to intervene in foreign exchange markets?

• The level of foreign reserves

• The domestic unemployment rate

• The trade balance with the Eurozone

• The valuation of the Swiss franc

How does the SNB view the inflation pressure in Switzerland for the long term?

• Moderate and stable

• High and increasing

• Low and unchanged

• Unpredictable and volatile

What is a key factor behind the SNB's conditional inflation forecasts?

• International monetary policy adjustments

• Domestic fiscal policy changes

• Increased consumer spending

• Rising commodity prices

Why does the SNB believe it can continue its expansive monetary policy?

• Interest rate differentials are high

• Inflation pressure remains low

• The Swiss franc is undervalued

• The output gap is closed