SNB keeps rates unchanged at -0.75%, USD/CHF off 3-week highs


  • SNB maintains the status-quo in March.     
  • USD/CHF falls from three-week highs of 0.9756.

At its March quarter monetary policy assessment held this Thursday, the Swiss National Bank (SNB) board members decided to leave the monetary policy settings unchanged.

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%, as widely expected.

On the expected rates on-hold decision by the SNB, the Swiss franc extended the recovery from a three-week high vs. the greenback, with USD/CHF testing the 0.9700 support area.

Summary of the statement

Swiss financial system has sufficient liquidity.

To intervene more strongly in the FX market to stabilise the situation.

Swiss franc is even more highly valued.

Will take additional steps to ensure liquidity as necessary.

Examining whether or not to relax the countercyclical buffer.

Coronavirus is posing exceptionally large challenges for Switzerland, both socially and economically.

Uncertainty has risen considerably worldwide, and the outlook both for the global economy and for Switzerland has worsened markedly.

Chairman Jordan to hold news conference.

New conditional inflation forecast is lower than in December.

Pronounced economic declines are to be expected in the first half of 2020.

Speed with which the global economy subsequently recovers will hinge on the combined impact of healthcare, fiscal and monetary policy measures.

About SNB Rate Decision

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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