SNB Ready for BoE and ECB Easing Says Jordan

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.

via Bloomberg

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza