SNB Quarterly Bulletin: Willing to intervene more strongly in foreign exchange market

In light of the highly valued Swiss franc, the Swiss National Bank (SNB) remains willing to intervene more strongly in the foreign exchange market, the SNB reiterated in its Quarterly Bulletin on Wednesday.

Key takeaways

"The SNB’s expansionary monetary policy helps stabilise economic activity and price developments in Switzerland."

"In the current situation, inflation and growth forecasts are subject to unusually high uncertainty."

"The coronavirus pandemic has pushed the global economy into a sharp recession."

"In its baseline scenario for the global economy, the SNB anticipates that further waves of infection will be successfully prevented."

"The SNB anticipates that, as abroad, there will be only a partial recovery for the time being, and GDP will not return quickly to its pre-crisis level."

Market reaction

The USD/CHF pair continues to edge higher and was last seen gaining 0.35% on the day at 0.9488.