Swiss National Bank

Swiss National Bank to Be Vigilant with Intervention to Contain Franc Strength

March 19, 2020

The Swiss National Bank‘s sight deposit rate of negative 0.75% since January 2015 was retained at that central bank’s quarterly policy review, and officials characterized the franc as even more overvalued than before, which will necessitate more intense intervention in the FX market. Extra steps are being taken to ensure ample liquidity. Officials do not […] More

Central Banks, Economic Data Surprises, and British Voters in the News This Thursday

December 12, 2019

Polls in Britain’s parliamentary election today will close at 22:00 GMT 17:00 EST. The fate of Brexit is at stake. U.S. producer prices stayed unchanged in November, defying expectations of an increase and leaving the 12-month  increase at 1.1%. An even bigger surprise was a leap in new jobless insurance claims last week to 252k, […] More

Eight More Central Bank Meetings, a U.S. Current Account Report, and Downgraded Global Growth

September 19, 2019

Dollar movement overnight was mixed, with gains against the Australian dollar, kiwi, sterling, and yuan but losses relative to the yen, Swiss franc, euro, loonie and peso. The 10-year U.S. Treasury and Japanese JGB yields fell three basis points. Their German and British counterparts are respective a basis point higher and a basis point lower. […] More

Swiss Quarterly Monetary Policy Review

June 14, 2019

The Swiss National Bank’s quarterly monetary policy review yesterday left the expansionary stance unchanged. Viewing their currency to be overly pricey, officials remain prepared to intervene against excessive appreciation on a discretionary basis as appropriate. The 3-month sight deposit target remains negative 0.75% as defined by a -1.75 to -0.25% 3-month LIBOR corridor. However, officials […] More

Swiss National Bank Keeps Policy the Same but Lowers Projected CPI Inflation Path

March 21, 2019

At the latest quarterly review of Swiss monetary policy, SNB officials kept policy unchanged. Since January 2015, when the automatic cap on Swiss franc was lifted and the interest rate target was cut by 50 basis points, the 3-month Libor rate target band has been an all-negative range of minus 1.25% to minus 0.25%, the […] More

Theme of the Day: Slowing Global Growth

March 21, 2019

Since the Federal Reserve’s policy decision and press conference yesterday, there’s been a parade of other central bank policy meetings. Although only Norway changed its policy rate — a hike no less — the running theme in the many central bank statements is that the slowdown in global demand late last year is continuing and […] More

Many Central Bank Meetings and a Stunning Deceleration of U.S. Import Price Inflation

December 13, 2018

The dollar shows no net overnight change against the Swiss franc, Chinese yuan, New Zealand dollar, or Canadian dollar. The greenback rose 0.8% versus the Mexican peso, 0.4% relative to the yen, and 0.1% versus the euro while dipping 0.1% vis-a-vis the Australian dollar and sterling. Asian equities rallied, but share prices in Europe and […] More

Softer Dollar

September 20, 2018

The dollar fell overnight by 0.8% against the kiwi, 0.6% relative to sterling, 0.4% vis-a-vis the euro and 0.2% versus the currencies of America’s NAFTA partners. The yen and yuan are unchanged. China partly matched Trump’s latest round of tariff hikes. While the 10-year German bund and British gilt yields settled back a basis point […] More

Swiss National Bank Keeps Negative 0.75% Interest Rate

March 15, 2018

In mid-January 2015, the Swiss National Bank discontinued its intervention-enforced minimum exchange rate target of 1.2000 per euro but at the same time lowered the sight deposit target by a half percentage point to -0.75% and the 3-month Swiss Libor target range to -1.25% to -0.25% (from -0.75% to +0.25%). Equally important, monetary officials promised […] More

Swiss National Bank

December 14, 2017

Swiss monetary policy gets reviewed quarterly, which is less frequent than the practice at many other central banks. The current interest rate settings of a negative 0.75% sight deposit rate within a 3-month Libor corridor of minus 1.25% to minus 0.25% dates back to January 2015 when SNB authorities ended an automatic asymmetric Swiss franc […] More