Will SNB Ease its Monetary Policy Further in September?

Arslan Butt•Thursday, August 29, 2019•1 min read

According to SNB governing board member, Andrea Maechler, the Swiss central bank will keep its monetary policy loose to stop the rising demand for the Swiss franc and prevent it from appreciating further. Amid rising trade tensions and uncertainty in global financial markets, traders run towards safe haven currencies like the Swiss franc and the Japanese yen.

Maechler made these comments at an economic conference, adding that the SNB will keep interest rates negative to curtail CHF’s attractiveness as a currency to invest in. On account of the US-China trade war and Brexit uncertainties, CHF is trading close to two-year highs against the Euro.

The SNB’s next quarterly monetary policy assessment is scheduled for September 19 and markets are expecting it to ease the monetary policy further to support the Swiss economy and boost inflation, which is below the target presently. Sight deposits at the central bank have touched record levels, which indicate that the SNB has already started intervention to stem CHF’s appreciation.

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Arslan Butt

Index & Commodity Analyst

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.