SNB's Jordan: Swiss franc is no longer highly valued because of recent depreciation
|Following the Swiss National Bank's (SNB) decision to hike its policy rate by 50 basis points on Thursday, Chairman Thomas Jordan noted that the Swiss franc was no longer highly valued because of the recent depreciation, per Reuters.
Additional takeaways
"Tighter monetary policy aims to prevent the spread of inflation more broadly in Switzerland."
"Without policy rate rise today, forecast inflation would be much higher."
"There are signs inflation is spreading to goods and services not affected by Ukraine and pandemic."
"Price increases are being passed on more quickly and more readily accepted than in the past."
"There was a risk of second-round effects if inflation stays above 2% for a long time."
"Central bank is ready to intervene in markets to check excessive appreciation or weakening of the Swiss franc."
Market reaction
The USD/CHF pair stays under heavy bearish pressure following these comments and was last seen losing 1.3% on the day at 0.9817.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.