Swiss central bank sees less need to intervene in forex markets, SNB minutes say
TLT•The Swiss National Bank said it saw less need to intervene in foreign exchange markets as the franc had depreciated around 3% since its June rate decision. The bank kept its policy rate at 0% in September and said monetary conditions were appropriate to keep inflation within its 0-2% target range over the medium term.
1. Less need for intervention
The Swiss National Bank said it saw less need to intervene in foreign exchange markets to curb the franc’s rise, while remaining willing to be active. “An increased willingness to intervene is no longer necessary in the current environment,” the minutes of its September rate-setting meeting said.
2. Franc and inflation
The franc had depreciated by around 3% since the bank’s June interest rate decision because of higher interest rates in other currency zones. The SNB also said there had been little safe-haven demand for the franc.
3. Policy rate unchanged
The SNB kept its policy rate at 0% in September, despite forecasting slightly higher inflation in the coming months. It said rising inflation was largely due to more expensive oil, with no signs of spillover effects into other parts of the economy.
