Swiss National Bank's Ms Andréa M Maechler has crossed the wires saying that raising interest rates was intended to send a clear signal that the SNB is determined to bring down inflation.
- We see a weakening in the swiss economy but no recession.
- Declines comment on possible further interest rate moves.
- Potential losses by central bank do not influence monetary policy.
- Recent rise in swiss franc has helped dampen inflation.
- Now is not the time to reduce central bank's balance sheet.
- Central bank ready to buy foreign currencies if franc too strong, buy francs if currency is too weak.
- A set level for franc exchange rate is not important, it is the impact the exchange rate has on inflation.
Meanwhile, USD/CHF is higher by some 1.25% as the US dollar extends its bullish cycle to fresh highs on Monday in the DXY to 114.58.
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