The SNB meets expectations and leaves the interest rate unchanged at -0.75%

• The SNB left its policy rate unchanged in March, as expected.
• USD/CHF remains trading in positive territory above 0.9300.

The Swiss National Bank (SNB) announced this Thursday that it is leaving the interest rate unchanged in the -0.75%, as expected. In its monetary policy statement, the SNB reiterated that it remains willing to intervene in the forex market as needed to counter upward pressure on the Swiss franc.

SNB statement

“In the decision not to vary the rates, the general situation of the currency and the differential in the rate of inflation with other countries are taken into account.”

“The Swiss franc remains highly valued.”

“The Russian invasion of Ukraine has led to a sharp increase in uncertainty around the world.”

“In this context, the SNB with its monetary policy is guaranteeing price stability and supporting the Swiss economy“.

“It is difficult to assess the future course of the war and its economic impact.”

“The risks to growth are considerable and to the downside.”

“We will continue to closely monitor developments in the mortgage and real estate markets.”

“A further escalation of the war and an extension of sanctions could weigh more on economic activity around the world and in Switzerland than is assumed in the reference scenario.”

“A renewed deterioration of the pandemic situation cannot be ruled out.”

“A worsening of the tight supply of raw materials could lead to a new increase in inflation worldwide“.

market reaction

The USD/CHF pair showed no immediate reaction to the SNB policy announcements and was last seen up 0.3% on the day at 0.9335.