The Swiss National Bank is keeping a close watch on its U.K. and euro-area counterparts and has leeway to adjust policy if needed in the wake of the Brexit vote, President Thomas Jordan said.
“We are monitoring the situation very carefully: what are the consequences for inflation and growth in Switzerland, what are our policy options,” he said in Chengdu, China, when asked whether easing by the European Central Bank or the Bank of England could force the SNB to step up its efforts. “The franc remains significantly overvalued, it’s a big concern for us.”
Jordan, speaking in an interview on Sunday, affirmed the SNB’s two-pillar strategy, consisting of a negative deposit rate of minus 0.75 percent — “where we still can go lower if necessary” — and a pledge to intervene. Here “we also have the appropriate room to act,” he said.