- danger of sudden upward pressure still not averted
- EURCHF cap at 1.2000 remains the key monetary policy tool
- ready to take extra measures if needed
- ready to purchase unlimited fx to defend cap
- mortgage market is risk to swiss price stability
- environment is “extremely challenging” for Swiss economy
SNB president Thomas Jordan speaking at SNB AGM in Bern
- rate increase not an option as it would increase upward pressure on CHF
- no risk of inflation for foreseeable future
- Q1 property price momentum similar to Q1 2013
- Swiss referendum decision on immigration creates economic uncertainty
CHF buying on the repeated news that they don’t have a lot of options to prevent further appreciation, but move is limited by the fact that yes they will throw the fx reserve kitchen sink at it
USDCHF 0.8809 from 0.8818 EURCHF 1.2190 from 1.2197