Swiss SNB Policy Rate (Q3) -0.75% vs. Exp. -0.75% (Prev. -0.75%); CHF reiterated as ‘highly valued'

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  Remains willing to intervene in the foreign exchange market as necessary in order to counter upward pressure on the Swiss franc (prev. remains willing to intervene in the foreign exchange market as necessary while taking the overall currency situation into consideration). - see analysis


• 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.


• 2021 GDP growth: ~3.0% (prev. ~3.5%)


• 2021 inflation: 0.5% (prev. 0.4%)

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Reaction details (08:39)

• Limited movement seen in the CHF on this policy announcement

Analysis details (08:44)

• As expected, the main parameters were left unchanged. However, the ordering of the language has been altered to feature the phrase 'counter upward pressure on the Swiss franc' as the accompaniment to the currency's highly valued classification. Previously, this phrase was attached to the end of the opening paragraph. While just a reordering of existing language, it is an interesting tweak and perhaps in acknowledgment of price action seen in the CHF since June and the potential for further moves in the weeks/months ahead given multiple potential global risk factors in play (e.g. Evergrande)

23 Sep 2021 - 08:30- Fixed IncomeData- Source: Reuters