SNB reiterates commitment for 1.20 floor, negative rates not ruled out

FXStreet (Bali) - SNB Chief Thomas Jordan crossed the wires over the weekend, in an interview with NZZ am Sonntag, reiterating their commitment to defend the 1.20 EUR/CHF floor, noting that some additional measures, such as negative interest rates, could be possible.

Jordan stated: “The franc is still highly valued. Enforcing the minimum exchange rate of 1.20 per euro is absolutely central to ensure adequate monetary conditions in Switzerland. The environment has deteriorated for Switzerland. New geopolitical risks have arisen and the international economic data — particularly in Europe and South America — was worse than we expected.”

Jordan said that the SNB has not intervened since 2012. He also suggested that negative rates are still a possibility, by saying "we exclude no measure that could be necessary to guarantee adequate monetary conditions; should monetary policy prove to be too restrictive, one would have to think about about what measures would be sensible to fulfill the mandate.”

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