SNB chairman Schlegel: Switzerland needs flexible inflation target, as it currently has

• Inflation target has allowed central bank to respond flexibly to shocks
• Central bank’s main tools are policy rate, FX interventions
• Global economy slowdown has hit Switzerland harder due to currency appreciation
• Recognises franc’s safe haven nature
• Will continue to ensure price stability

Not really anything noteworthy there by Schlegel. For now, the SNB is still expected to cut its policy rate once again in December. The odds of a 25 bps rate cut right now are ~72% with the remainder tied to a 50 bps move.

This article was written by Justin Low at www.forexlive.com.