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November 20, 2018

Swiss National Bank sees no reason to change its monetary policy


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Thomas JordanDespite the recent weakening of the Swiss franc, the Swiss National Bank (SNB) sees no reason to change the negative interest rate from minus 0.75%.

“We are convinced that the current monetary policy is still needed”, said the SNB President, Thomas Jordan. In his words, now is not the time to talk about a change in monetary policy.

Earlier, the franc reached the minimum exchange rate of 1.20 francs per euro for the first time since the fixed exchange rate was lifted in early 2015.

“This is a step in the right direction”, said Thomas Jordan. Despite the recent depreciation in his words, the Swiss franc is still considered as assets haven, but the situation is “fragile” and is prone to change from today to tomorrow. “So we remain very reasonable and cautious”, added Thomas Jordan.

Although he refused to comment on the policy of the European Central Bank, The President of SNB said that the big central banks around the world are returning to “normal” and this is a positive sign and would “help the smaller economies by giving them more room for maneuver in future”.

Bloomberg Foreign Exchange Surveys support the cautious position of the President of the Swiss Central Bank: the median forecast for the Euro-franc exchange rate is 1.18 per euro by the end of 2018

The Swiss central bank has already changed its communications policy last year, replacing the definition of the franchise “considerably overvalued” with “highly appreciated”.


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