SNB chairman Schlegel: Our principal instrument is the coverage fee

• With that we are able to affect the economic system and trade fee
• There’s nonetheless room for additional fee cuts
• We’re additionally able to intervene within the FX market if mandatory
• This step is meant to stabilise inflation between zero% and a couple of%

Schlegel is especially clarifying that the change in wording right now doesn’t suggest that fee cuts are off the desk going into subsequent yr. Moreover that, he is additionally ensuring markets know that whereas there’s a give attention to their fee selections, FX interventions are additionally as key a component to be aware about when watching the franc.

This text was written by Justin Low at www.ubaidahsan.com.



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