Jan 16, 2019
SNB's Jordan: Franc is still a safe haven, when uncertainty rises investors seek the franc
Swiss National Bank (SNB) Chairman Thomas Jordan has recently crossed the wires arguing that Brexit was a risk for Europe and the final outcome could have an effect on the CHF's exchange rate.
Key quotes (via Reuters)
- Interest rates and currency interventions are powerful instruments, are having an effect.
- Central Bank has contributed to Switzerland coming through finance crisis.
- Current monetary policy is appropriate and there is no reason to change it.
- Cconomic uncertainties have increased in recent months, including Brexit.
- Interest rate differential to euro area very important, plays important role.
- The franc has stablised but remains highly valued.
- Currency markets remain fragile, uncertainty has increased not just because of Brexit.
- Franc is still a safe haven, when uncertainty rises investors seek the franc.
- There is no risk in near future of Swiss inflation rising.
- Negative interest rates are difficult for the pension funds and affect the property market.
- If we increased interest rates, Swiss economy would be affected and have negative impact on pensions.