SNB's Jordan: Without negative rates, CHF would be more attractive and rise in value
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In his prepared remarks delivered to pension managers on Thursday, Swiss National Bank Chairman Thomas Jordan said negative interest rates and readiness to intervene in the forex market was still essential to ease the pressure on the Swiss Franc.
"Without negative rates, the Franc would be more attractive and rise in value," Jordan further argued.
The USD/CHF pair largely ignored Jordan's comments and was last seen trading at 0.9875, down 0.18% on a daily basis. Below are some additional quotes, as reported by Reuters.
"Negative interest rate protects traditional interest rate gap vs other countries."
"Narrowing interest rate spread would increase upward pressure on the Franc."
"Short-term interest rates could remain below usual levels even if central banks normalise policy."
"Cannot say when Switzerland can return to positive interest rates."
"Exemptions to negative rates would reduce their effectiveness."
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