SNB chief, Thomas Jordan, speaks in an interview with RTS
- Cannot say when rates will rise again
- We're not big fans of negative interest rates
- But in the environment today, it is necessary
- A weak euro was a problem for years
- But in recent months, it is the dollar that has weakened
- Switzerland getting through the crisis relatively well
Given how inflation pressures are going nowhere in the Swiss economy, the SNB certainly has their hands tied on policy. And that is something that might not change over the next decade or so, especially now with the virus crisis taking hold.
Jordan's remarks on the euro and dollar is more interesting though, as it could allude to the SNB potentially putting more emphasis/focus on the USD/CHF exchange rate level than the EUR/CHF exchange rate level that they are normally accustomed to.