SNB: Policy Rate -0.75% (prev. -0.75%); CHF classified as ‘Highly Valued’ (prev. ‘Highly Valued’); reiterates line on FX intervention

• Reiterates “Remains willing to intervene in the foreign exchange market as necessary”


• Reiterates “Mortgage lending and residential property prices have risen strongly in recent quarters. Overall, the vulnerability of the mortgage and real estate markets has increased further. The SNB regularly reassesses the need for the countercyclical capital buffer to be reactivated.”


• In its baseline scenario for the global economy, the SNB assumes that extensive containment measures will not have to be introduced again, this despite the adverse developments regarding the pandemic at present.

Via SNB

Reaction details (08:35)

• In an immediate reaction to this essentially unchanged policy announcement, EUR/CHF moved higher from 1.0434 to 1.0446 before paring half of the move. Drivers for this CHF depreciation are not immediately evident from the announcement, so we await the presser with Chairman Jordan at 09:00GMT for further insight; however, it's worth bearing in mind the move may be an unwinding of pre-SNB positioning given the heavy docket today with the currency awaiting the ECB and moving with other havens - a view evidenced via EUR/JPY, for instance.

16 Dec 2021 - 08:30- Fixed IncomeImportant- Source: SNB