Reply To: ECB Raises Rates Another 75 bps as Expected TLTRO Terms and Conditions Recalibrated


SNB’s Jordan speaks after the ECB rate decision to hike rates by 75 basis points today:

ECB 75 basis point rate hike not fully surprising
We must ensure price stability over medium-term
Gas or power stoppages would have devastating impact on economy’s
Exchange rates play a role in inflation, when big central banks act this helps us
You should not be surprised that SNB acts independently
It is positive for SNB of major central banks normalize
It would not create difficulty if the ECB takes 100 basis point hikes
S&P decides monetary policy and regular meetings unless under severe time pressure
no decision yet on what to decide at September 22 policy meeting
next step depends on analysis underway, need to gauge inflationary pressure, exchange rate
uncertainty about inflation much higher than usual, can’t say have reached a peak
price stability is our mandate of course need to keep impact of policy on economy in mind as well
Swiss franc rise tends to help rather than hurt
real effective exchange rate of franc has been astoundingly stable

The EURCHF has taken a move to the downside today and in the process has move back below the 2015 low near 0.97065.