SNB’s Jordan: We don't manipulate Swiss franc exchange rate, CHF falls further

Swiss National Bank (SNB) Chairman Thomas Jordan said in a CNBC interview on Thursday, the negative interest rates are a necessity for Switzerland amid the recent policy changes.

Key Quotes:

We know that negative rates also have side effects, that is the reason why we changed the threshold.

That gives us the freedom to maintain negative rates for longer and also to cut the rate if necessary.

Negative rates have side effects, SNB trying to minimise those side effects.

Balance of risks is tilted to the downside.

SNB conducts independent monetary policy, does not follow the ECB.

But needs to take international environment into account.

SNB could still cut rates if needed.

Franc is still highly valued.

Must maintain negative rates, interventions.

SNB can intervene as necessary.

We don't manipulate Swiss franc exchange rate.

Never intend to weaken the franc for any advantage.

Doesn't see a new minimum exchange rate at the moment.

We still have a highly valued Swiss franc, important to keep expansive policy.

FX Implications:

The Swiss franc extends the intraday losses on SNB Chief Jordan’s comments, driving USD/CHF to a fresh daily high at 0.9692, up 0.13% on the day.

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