The Swiss National Bank (SNB) board members decided to leave the monetary policy settings unchanged at the end of its June quarter monetary policy assessment held this Thursday. The SNB left the benchmark sight deposit rate unchanged at -0.75%. The central bank maintained the 3-Month Libor Target Range steady between -1.25% to -0.25%.
Being put on the currency manipulation watchlist by the United States will not change the Swiss National Bank's (SNB) monetary policy, SNB Governing Board member Andrea Maechler said on Wednesday, per Reuters. "The SNB is ready to intervene in FX markets if needed," Maechler noted and added that the SNB will end negative interest rates as soon as they are able to.
In an interview with Blick on Wednesday, the Swiss National Bank (SNB) Chairman Jordan made some comments on the central bank’s monetary policy and inflation outlook. Key Quotes: No further rate cut needed at the moment. But if there is a need to act, the SNB will deepen further negative rates.
As expected the SNB decided to maintain its expansionary policy, with the deposit rate still at -0.75% and the range for three months Libor at -1.25% to -0.25%. The central bank also reiterated that it will “remain active in the foreign exchange market as necessary while taking the overall currency situation into consideration”.
The central bank reiterated its willingness to intervene as required in foreign exchange markets to prevent an appreciation of the Swiss franc. The Bank still believes the franc is “highly valued” and insisted on its volatility over the past three months and thinks it is still considered a safe-haven asset.
The Swiss National Bank conducts the country’s monetary policy as an independent central bank. It is obliged by the Constitution and by statute to act in accordance with the interests of the country as a whole. Its primary goal is to ensure price stability, while taking due account of economic developments. In so doing, it creates an appropriate environment for economic growth.
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Thomas J. Jordan was born in Bienne, Switzerland in 1963. Thomas J. Jordan is a member of the Board of Directors of the Bank for International Settlements (BIS) in Basle and the Steering Committee of the Financial Stability Board (FSB). He is the Governor of the International Monetary Fund (IMF) for Switzerland, and also Chairman of the G10 Central Bank Counterfeit Deterrence Group (CBCDG).
The World Interest Rates Table reflects the current interest rates of the main countries around the world, set by their respective Central Banks. Rates typically reflect the health of individual economies, as in a perfect scenario, Central Banks tend to rise rates when the economy is growing and therefore instigate inflation.
