Swiss National Bank board member Jordan says that the crisis calls for too much rather than too little monetary policy stimulus. Switzerland is in a “massive” recession and deflation risks have decreased.
FX intervention has been effective, he says, and it continues ad hoc.
The next step could be a fixed FX target, he says, (a scary prospect if that target is much higher and you happen to be short EUR/CHF)
Jordan dismissed criticism of the SNB intervention as a “beggar thy neighbor strategy” and that there is no currency “war”
EUR/CHF has rebounded above the 1.5400 level on the comments. A central bank was spotted selling around these levels earlier today. My guess is listening to these comments, they’ll refrain for now.
