The SNB Will Keep Intervening, But No Change in the Policy

It seems like the Swiss National; Bank keeps following the ECB and their actions. The ECB didn’t move interest rates earlier this month, when the rest of major central banks have gone mental and have cut rates aggressively, as well as throwing cash on the streets, with QE programmes.

The SNB remained on hold as well today, so they are following the ECB closely. Below is the rate decision and some comments form SNB chairman Jordan:

SNB Monetary Policy Decision

• SNB leaves policy rate unchanged at -0.75%
• Prior -0.75%
• Sight deposits rate unchanged at -0.75%

• Swiss financial system has sufficient liquidity
• To intervene more strongly in the FX market to stabilize the situation
• Says that Swiss franc is even more highly valued
• Will take additional steps to ensure liquidity as necessary
• Examining whether or not to relax the counter-cyclical buffer

SNB Chairman, Thomas Jordan Press Conference

• Fiscal policy is central to combat the crisis
• The situation cannot be tackled with monetary policy alone
• SNB stepped up FX intervention since the virus outbreak began

He’s right saying that the situation cannot be tackled with the monetary policy alone. Well. nothing can really do much in this situation, except for governments to isolate people for a few weeks and then go back to normality. The SNB is already intervening in the forex market, but the CHF remains highly valued still, as Jordan implied.