SNB's Jordan: Easing of monetary policy possible because fight against inflation has been effective
Following the decision to lower the policy rate to 1.50%, Swiss National Bank (SNB) Chairman Thomas Jordan said that the “easing of monetary policy was possible because fight against inflation has been effective.”
Key quotes
Inflation is likely to remain in target range over the next few years.
See lower second round effects from inflation.
Uncertainty still elevated, will adjust policy again if necessary.
Price momentum has slowed more quickly than expected in December.
Swiss growth likely to remain modest in coming quarters.
Weak foreign demand and Franc appreciation has had dampening effect.
Remain willing to be active in forex market as necessary.
Interest rate cuts is 100% compatible with our framework.
We have much lower inflationary pressure than 3 months ago.
We give no forward guidance on future interest rates, will see where we are in 3 months time.
Rate cut is not a leaving gift, we always make the right decisions.
We always make our monetary decisions independently of what other central banks do.
We have no goal for the size of our balance sheet, we have no need to reduce it.
Market reaction to SBN Jordan's comments
USD/CHF is off the multi-month highs but holding 1% higher on the day at around 0.8960.
Swiss Franc price today
The table below shows the percentage change of Swiss Franc (CHF) against listed major currencies today. Swiss Franc was the weakest against the Australian Dollar.
| USD | EUR | GBP | CAD | AUD | JPY | NZD | CHF | |
| USD | 0.42% | 0.27% | 0.22% | -0.08% | 0.26% | 0.13% | 1.17% | |
| EUR | -0.43% | -0.16% | -0.21% | -0.51% | -0.20% | -0.28% | 0.74% | |
| GBP | -0.27% | 0.15% | -0.05% | -0.34% | -0.03% | -0.12% | 0.91% | |
| CAD | -0.23% | 0.19% | 0.05% | -0.31% | 0.02% | -0.07% | 0.94% | |
| AUD | 0.07% | 0.49% | 0.35% | 0.29% | 0.31% | 0.23% | 1.24% | |
| JPY | -0.27% | 0.16% | 0.02% | -0.05% | -0.32% | -0.10% | 0.91% | |
| NZD | -0.14% | 0.28% | 0.15% | 0.08% | -0.23% | 0.12% | 1.05% | |
| CHF | -1.18% | -0.76% | -0.92% | -0.97% | -1.28% | -0.92% | -1.05% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Euro from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent EUR (base)/JPY (quote).
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
