SNB president Thomas Jordan quoted in the Swiss Weltoche magazine referring to the EURCHF 1.2000 cap

  • due to weak inflation “the minium exchange rate will remain the key monetary policy instrument for the foreseeable future”

Make that the only instrument as the SNB continues to find itself between a rock and a hard place

More from Jordan:

  • monetary policy isn’t a cure-all. low interest rates can lead to distortions
  • means for withdrawing liquidity exists, timing is the challenge. withdrawal of liquidity must be carried out to avoid unecessary money market volatility
  • CHF is still highly valued
  • inflation forecasts remain very low
  • the problem of winding down of global banks in event of crisis not yet sufficiently solved
  • Ukraine crisis is a “known unknown”

USDCHF still around 0.9023 on the repeated mantra. EURCHF 1.2151 and going nowhere in a hurry