Swiss National Bank (SNB) Martin Schlegel warned Friday that a “slowing economy in Switzerland could not be decided.”
Additional quotes
The trading policy situation creates high uncertainty for all countries, including Switzerland.
Price stability does not prevent uncertainty in trading policy, but is still very important.
The trade policy can be separate from the global economy.
The main instrument is an interest rate, but we can also use forex interventions to influence financial conditions.
USD/CHF reaction to SNB Schlegel's comments
Like writing, USD/CHF Holds a rebound above 0.8300, adding 0.45% to the day.
SNB FAQs
The Swiss National Bank (SNB) is the central bank of the country. As an independent central bank, its mandate is to ensure the stability of the price in the medium and long -term. To ensure price stability, SNB aims to maintain appropriate financial conditions, which are determined by the interest rate level and exchange rates. For SNB, price stability means an increase in the Swiss consumer price index (CPI) of less than 2% per year.
The Swiss National Bank (SNB) in charge of the Board decides its appropriate level of policy rate according to its price stability. When inflation is above the target or that -forecast beyond the target in the predictable future, the bank will try to ensure excessive price growth by increasing its policy rate. Higher interest rates are usually positive for the Swiss Franc (CHF) as they lead to higher yields, making the country more attractive -the country is more attractive for investors. Conversely, lower interest rates tend to soften the CHF.
Yes. The Swiss National Bank (SNB) regularly intervenes in the foreign exchange market to prevent over -appreciation for the Swiss Franc (CHF) against other currencies. A strong CHF is hurting the competitiveness of the country's powerful export sector. Between 2011 and 2015, SNB has implemented a peg to the Euro to limit the CHF's advancement against it. The bank intervenes in the market using heavy foreign exchange reserves, usually by buying foreign currencies such as the US dollar or the euro. During stages of high inflation, especially due to energy, SNB prevents mediars in the markets because a strong CHF makes energy imports cheaper, which regulates shock shock for Swiss households and businesses.
SNB meets once in a quarter – in March, June, September and December – to carry out the financial policy assessment. Each of these assessments results in a financial policy decision and the publication of a medium-term inflation forecast.
