Swiss National Bank Raises Policy Rate by 50 bps to 1.00%, as expected

The Swiss National Bank raised interest rates by 50 bps to 1.00%, market pricing was looking for a 50-bps rate hike. Notably the Swiss franc fell on the decision as those hoping for a 75bps rate hike were disappointed. In the aftermath after “SNB will sell forex in future if appropriate, will also buy to check excessive appreciation pressure.” The rate hike is to counter increased inflationary pressure and “The SNB cannot rule out further rate hikes to stabilize inflation.” … Continue reading “Swiss National Bank Raises Policy Rate by 50 bps to 1.00%, as expected”

Appreciation of Swiss Franc Guards Against Inflation says SNBs Jordan

The Swiss National Bank’s chief Jordan commenting in Lausanne, Switzerland Monday on inflation and the Swiss Franc said nominal appreciation of the franc helps guard against inflation. The remarks follow last week’s gain of 5.37% in the Swiss Franc against the US dollar. The strong Swiss franc has affectively shielded Switzerland from high imported inflation. Consumer price growth has already slowed for two consecutive months and is below 3%, compared to 10.7% in the surrounding euro area. Jordan said the Swiss … Continue reading “Appreciation of Swiss Franc Guards Against Inflation says SNBs Jordan”

Swiss National Bank Raises Policy Rate by 75 bps to 0.50%, Swiss Franc Falls sharply

The Swiss National Bank raised interest rates by 75 bps to 0.50%, market pricing was looking for a 100-bps rate hike instead. Notably the Swiss franc significantly weakened in the aftermath after SNB said “willing to be active in the FX market as necessary”. The move followed last meetings surprise 50 basis point hike which isolated Japan as the lone adherent to extremely easy monetary policy. The move took Switzerland out of negative rates. The rate hike is to counter … Continue reading “Swiss National Bank Raises Policy Rate by 75 bps to 0.50%, Swiss Franc Falls sharply”

Swiss National Bank Surprise 50 Basis Point Rate Hike, Raises to Stabilize Inflation

The Swiss National Bank surprise 50 basis point hike has isolated Japan as the lone adherent to extremely easy monetary policy. Prior was -0.75% and raised to -0.25%, so still negative rates which would be a nod to trying to limit Franc strength. The rate hike is to counter increased inflationary pressure The SNB cannot rule out further rate hikes to stabilize inflation Monetary policy assessment of 16 June 2022Swiss National Bank Tightens Monetary Policy Highlights Raises rates 50 bps to -0.25% … Continue reading “Swiss National Bank Surprise 50 Basis Point Rate Hike, Raises to Stabilize Inflation”

Swiss National Bank’s Zurbruegg Says Not Focus of Monetary Policy to Curb Risk to Financial System Vulnerabilities

The Swiss National Bank Vice Chairman Fritz Zurbrügg in a speech in Geneva Tuesday said the focus of monetary policy is price stability and economic developments, and not curbing financial system vulnerabilities”. He added “Moreover, we have observed an increase in affordability risks over recent years.” “In Switzerland, vulnerabilities in the residential real estate and mortgage markets have increased since the onset of the pandemic,” Zurbruegg said in a speech in Geneva. “Moreover, we have observed an increase in affordability risks … Continue reading “Swiss National Bank’s Zurbruegg Says Not Focus of Monetary Policy to Curb Risk to Financial System Vulnerabilities”

Swiss National Bank Leaves Rates Unchanged at -0.75% as expected, Raises Inflation Forecast

The Swiss National Bank kept negative interest rates unchanged at -0.75% for sight deposits in December. The SNB made no key changes in their language as they continue to keep negative rates and reiterated that the Swiss franc remains “highly valued”. Monetary policy assessment of 16 December 2021Swiss National Bank maintains expansionary monetary policy Interest Rates Sight Deposits -0.75% UNCH 3-month Libor lower target range -1.25% 3-month Libor upper target range -0.25% Statement Highlights September 2021 SNB will remain active … Continue reading “Swiss National Bank Leaves Rates Unchanged at -0.75% as expected, Raises Inflation Forecast”

Japanese Yen and Swiss Franc Attract Flight To Safety Bids on Virus Fears

The Japanese yen and the Swiss franc received safe haven bids on Friday as the global markets panicked on news of the Covid Omicron variant. In a thin market it also gave traders an opportunity to book profits after an extended rally in the US dollar. On the flip side commodity beneficiaries and the growth sensitive Australian dollar and Norwegian krone sold off. Moves weren’t just against the dollar. Whilst the euro rose 0.97 percent to a high of US$1.1312, … Continue reading “Japanese Yen and Swiss Franc Attract Flight To Safety Bids on Virus Fears”

Swiss National Bank Leaves Rates Unchanged at -0.75% as expected, Franc Remains Highly Valued

The Swiss National Bank kept negative interest rates unchanged at -0.75% for sight deposits in September. The SNB made no key changes in their language as they continue to keep negative rates and reiterated that the Swiss franc remains “highly valued”.

Swiss National Bank Tests How to Issue a Central Bank Digital Currency

The Swiss National Bank announced they are to test a transfer of central bank digital currency funds. “We will try some cross-border functionality.” “There will be another central bank and another currency other than the Swiss franc. ” said Thomas Moser of the SNB’s governing board. The test follows the researxh paper “How to Issue a Central Bank Digital Currency”

Switzerland National Bank Sets No Upper Limit For New Covid-19 Fund

The Swiss National Bank in response to the Coronavirus Pandemic set up a refinancing facility and deactivated the counter-cyclical buffer for Swiss Banks Tuesday. The SNB announced new packages to attempt to protect the Swiss economy.