MNI BRIEF: SNB Sees FX Move Risk For Inflation - Sept Minutes

With monetary policy having "an expansionary effect” further easing was "not appropriate", the inaugural publication of the Swiss National Bank's policy meeting minutes showed on Thursday. (See MNI SNB WATCH: Holds At Zero, But Inflation Outlook Unchanged )

The inflation and economic outlook supported keeping the policy rate at 0%, but the Governing Board "remains willing to be active in the foreign exchange market as necessary," and will "continue to monitor the situation closely and adjust monetary policy if necessary, to ensure that inflation remains within the range consistent with price stability over the medium term,” the minutes showed.

Swiss inflation is not expected to become persistently negative, but the economic outlook is subject to high risks, above all due to U.S. trade policy. "The extent of these effects is uncertain, however, and dependent on various factors" and for the inflation outlook, "large exchange rate movements are above all cited as a risk factor."