SNB Chairman Thomas Jordan said over the weekend that “we unfortunately have no choice but to maintain the negative interest rate”. Otherwise, the Swiss Franc would be “massively more attractive” and the financing condition for the economy would be “much worse”. He repeated that “the negative interest is necessary at the moment to avert major damage to Switzerland.”

He also emphasized again that the central bank is “active in the foreign exchange markets to reduce the pressure on the Swiss franc”. “We deliberately never report our transactions in detail, but I would like to emphasize that we are making a substantial commitment,” he said. “The appreciation on the franc as a safe haven has become enormous,” he added. “Without the SNB’s monetary policy we would see a completely different franc exchange rate in the current situation.”

Jordan also said SNB “still have room to manoeuvre” on interest rates. But today, “we are focusing on interventions on the foreign exchange market to limit the pressure on the franc.”

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