SNB leaves policy rate unchanged at -0.75% as expected


Share:
  • SNB left its policy rate unchanged in March as widely expected.
  • USD/CHF continues to trade in positive territory above 0.9300.

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.

Additional takeaways

"In so doing, it takes the overall currency situation and the inflation rate differential with other countries into consideration."

"The Swiss franc remains highly valued."

"Russia’s invasion of Ukraine has led to a strong increase in uncertainty worldwide."

"Against this backdrop, the SNB with its monetary policy is ensuring price stability and supporting the Swiss economy."

"Difficult to assess the future course of the war and its economic impact."

"The risks to growth are considerable and to the downside."

"Will continue to monitor developments on the mortgage and real estate markets closely."

"A further escalation of the war and a widening of the sanctions could weigh more heavily on economic activity worldwide and in Switzerland than assumed in the baseline scenario."

"Renewed deterioration in the pandemic situation cannot be ruled out."

"A worsening in the tight supply of raw materials could lead to a further rise in inflation globally."

Market reaction

The USD/CHF pair showed no immediate reaction to the SNB's policy announcements and was last seen rising 0.3% on the day at 0.9335.

Share: Feed news

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content


Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content

Editors’ Picks

EUR/USD keeps range near 1.0850 after EU Sentix data

EUR/USD keeps range near 1.0850 after EU Sentix data

EUR/USD is keeping its upbeat momentum intact near 1.0850 after the Eurozone Sentix Investor Confidence improved to -10.5 in March. The US Dollar is struggling, as traders stay cautious ahead of a big week, with the ECB rate decision and Powell's testimony in focus. 

EUR/USD News

GBP/USD clings to gains below 1.2700 as US Dollar struggles

GBP/USD clings to gains below 1.2700 as US Dollar struggles

GBP/USD is holding gains below 1.2700 in the European trading hours on Monday. A subdued US Dollar combined with an improvement in market sentiment keeps the pair afloat amid a data-light calendar on both sides of the Atlantic. 

GBP/USD News

Gold price stands tall near two-month top, eyes $2,100 amid rising June Fed rate cut bets

Gold price stands tall near two-month top, eyes $2,100 amid rising June Fed rate cut bets

Gold price (XAU/USD) attracts some buyers for the fourth successive day on Monday and trades near its highest level since December 28 touched on Friday. 

Gold News

XRP price hits new yearly high at $0.65, attorney says Ripple’s influence on XRP is decelerating

XRP price hits new yearly high at $0.65, attorney says Ripple’s influence on XRP is decelerating

XRP price climbed to a new 2024 high of $0.65 on Saturday and suffered a minor pullback to $0.63, early on Monday. The altcoin has sustained above the psychologically important level of $0.60 amidst developments in the SEC v. Ripple lawsuit.

Read more

A week packed with data and decisions

A week packed with data and decisions

In the US, the week will be packed with jobs data and Fed Chair Powell’s congressional testimony. The US economy is expected to have added around 190K new nonfarm jobs, the unemployment rate is seen steady near 3.7%. 

Read more

Forex MAJORS

Cryptocurrencies

Signatures