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SNB Governing Board Member Andrea Maechler said on Thursday the Swiss central bank is willing to intervene in FX market as necessary. The Swiss franc has been rallying against the euro on safe-haven concerns.

SNB Maechler

Highlights

  • Global outlook beset by uncertainty
  • SNB wants to limit negative rate burden for banks
  • SNB can sell reserves of monetary conditions require
  • SNB willing to intervene in FX market as necessary

“Our monetary policy has to navigate these obstacles in order to ensure appropriate monetary conditions for the Swiss economy,” Maechler told an event in Geneva.

“We remain willing to intervene in the foreign exchange market as necessary,” she said, noting how the SNB kept its interest rates locked at -0.75% in September.

“Broadening this mandate to pursue other objectives, such as promoting a green economy, would pave the way for conflicts of interest and politicise monetary policy,” Maechler said.

“This would affect the very essence of the SNB’s independence and thus its ability to make decisions that are occasionally difficult but absolutely necessary in order to fulfil its mandate and support Switzerland’s economy.”

Source: Reuters

From The TradersCommunity News Desk

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