SNB’s Schlegel: We are now more prepared to take action

Swiss National Bank Signals Readiness to Act on Swiss Franc Strength

During a press conference following the latest monetary policy decision, Swiss National Bank (SNB) Chairman Martin Schlegel emphasized the central bank’s commitment to countering any sharp rise in the Swiss Franc (CHF). The SNB opted to keep its interest rates steady at 0%, in line with market expectations.

Key Statements from Chairman Schlegel

• Medium-term inflation pressures remain unchanged.
• The SNB has heightened its preparedness to intervene in the foreign exchange market to curb rapid gains in the Swiss Franc.
• Strong demand for the Swiss Franc persists, contributing to its elevated value.
• The central bank’s primary objective is to maintain price stability, utilizing both foreign exchange interventions and interest rate adjustments as necessary.
• The Swiss Franc continues to be viewed as a safe haven, attracting investors during periods of global uncertainty.
• The probability of negative interest rates has risen.
• There is increased uncertainty surrounding the baseline inflation outlook.