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SNB’s Maechler: Policy rests on negative interest rates, readiness to intervene

Swiss National Bank (SNB) governing board member Andrea Maechler said on Tuesday, the central bank is ready to intervene when necessary.

Key quotes

SNB is never under pressure, plans to discuss potentially revised current prognosis for moderate global economic growth in 2 weeks.

SNB policy rests on negative interest rates, readiness to intervene.

The world is flooded with significant savings, but little readiness to invest those savings.

Intervention in forex markets helps keep the lid on the Swiss franc.

USD/CHF keeps losses below 0.9600

Despite a solid comeback from the lowest levels since April 2018 at 0.9519, the recovery attempts in USD/CHF remain capped below the 0.9600, as risk-aversion persists at full steam following a surprise 50 bps Fed rate cut.

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