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”
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”
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”
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”
The global stock bull market has many success storys, one of the biggest is the Swiss National Bank (SNB) which has been stealthly investing internationally with it’s foreign currency holdings. A fifth of the foreign currencies are invested in equities throughout Europe, the US and emerging economies. .
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.
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.
The Swiss National Bank Released it’s Foreign Exchange Reserves and Swiss Franc Bond Investments (end of Q3 2017) and filed its U.S. stock holdings with the SEC. 40% of it’s investments are in the euro with 35% in the U.S. Dollar. 68% in Bonds and 20% in stocks.
The Swiss National Bank (SNB) has been stealthly investing internationally with it’s foreign currency holdings at the end of September worth SFr760bn. A fifth of the foreign currencies are invested in equities throughout Europe, the US and emerging economies. $88 billion in U.S. stocks alone.