SNB's Maechler: Negative rates, FX intervention having desired effect but CHF still significantly overvalued

SNB’s governing board member Andrea Maechler was on the wires, via Reuters, highlighting that the central bank still have room for maneuver to lower interest rates further “if necessary”, she adds.

Key headlines

• Willingness to intervene in foreign exchange market as necessary constitutes a key element of our current monetary policy
• We still have some room for manoeuvre to lower interest rates further if necessary
• Says continuing to see strong aversion to risk among domestic investors, contributes significantly to franc strength
• Says SNB active around the clock in FX market, carrying out virtually all our foreign exchange transactions on electronic platforms