At its quarterly monetary policy assessment on September 21, the Swiss National Bank (SNB) kept the benchmark Sight Deposit Rate on hold at 1.75%. The rate decision was against the market expectations of a 25 basis points (bps) rate hike to 2.0%.
On the data front, inflation in Switzerland surprised to the downside and raised doubts about whether the SNB tightening cycle is over. No further rate increase in September and ‘higher for longer’ policy outlooks at the Fed and ECB, even without further hikes, could precipitate a bounce in USD/CHF and EUR/CHF provided the sky does not fall on equities and credit.
The SNB will raise its policy rate by an additional 25 bps at the September meeting, resulting in a policy rate of 2.00%. This move is expected to contribute to the downward trend of the EUR/CHF pair.
Swiss National Bank (SNB) governing board member, Andrea Maechler, made some comments on the interest rates outlook during her speech on Thursday. She said: “It cannot be ruled out that we will need to further hike interest rates.”
Following its quarterly meeting in June, assessing the monetary policy, the Swiss National Bank (SNB) announced 25 basis points (bps) increase to its benchmark sight deposit interest rate, lifting it from 1.50% to 1.75%, as widely expected.
The Swiss National Bank (SNB) announced on Thursday that it left the interest rate on sight deposits unchanged at -0.75% as expected. In its policy statement, the SNB reiterated it remains willing to intervene in the foreign exchange market as necessary to counter the upward pressure on the Swiss franc.
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.