- But sees no risk of deflation
- Further rate cuts might be necessary to ensure price stability
- Primary tool for the SNB will be interest rates but FX intervention could be used if necessary
The language is not much changed to that in June really. Back then, they noted about how “further policy adjustments” might be necessary. Now, they’re being more explicit in saying that “further rate cuts” might be necessary. But it’s all semantics, there was never any doubt that they were referring to rate cuts already in June.
The communique from Jordan is just letting markets know that they will be there if they do feel the franc is overstepping. But by falling short of labelling the franc as being “overvalued”, it could lead to traders thinking that they aren’t going to be too forceful on the issue yet.