SNB's Maechler: Ready to buy foreign currencies if franc too strong

Ross J Burland FXStreet

Swiss National Bank's Ms Andréa M Maechler has crossed the wires saying that raising interest rates was intended to send a clear signal that the SNB is determined to bring down inflation.

Key comments

We see a weakening in the swiss economy but no recession.
Declines comment on possible further interest rate moves.
Potential losses by central bank do not influence monetary policy.
Recent rise in swiss franc has helped dampen inflation.
Now is not the time to reduce central bank's balance sheet.
Central bank ready to buy foreign currencies if franc too strong, buy francs if currency is too weak.
A set level for franc exchange rate is not important, it is the impact the exchange rate has on inflation.

Meanwhile, USD/CHF is higher by some 1.25% as the US dollar extends its bullish cycle to fresh highs on Monday in the DXY to 114.58.

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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