Policy rate remains SNB’s primary tool, says Schlegel

The policy rate remains the Swiss National Bank’s (SNB) primary monetary policy instrument, Chairman Martin Schlegel said on Thursday. He was addressing a conference in Zurich in a speech titled “Transmission and conduct of monetary policy in Switzerland”.

What Are the Main Messages From the SNB?

While the policy rate is the SNB’s primary instrument, it also deploys measures such as foreign exchange interventions when needed.

So far this century, the SNB has achieved its objective of price stability.

Across a wide range of circumstances, our monetary policy strategy remains effective.

Compared with other currencies, the Swiss Franc has relatively strong safe-haven characteristics.

External economic shocks pose a high degree of exposure for Switzerland.

The use of forward guidance is not an approach the SNB believes in.

To combat inflation in the future, we have the appropriate tools.

We currently see no broadening of price pressures across Switzerland.

Fuel and energy account for most of the inflation currently seen in Switzerland.

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How Is the Swiss Franc Performing Today?

Against the Canadian Dollar, the Swiss Franc recorded its strongest performance today. The table below sets out today’s percentage changes in the Swiss Franc (CHF) against the major currencies listed.

	USD	EUR	GBP	JPY	CAD	AUD	NZD	CHF
USD		0.10%	0.04%	0.00%	0.13%	0.06%	-0.03%	0.14%
EUR	-0.10%		-0.05%	-0.12%	0.03%	-0.04%	-0.14%	0.03%
GBP	-0.04%	0.05%		-0.06%	0.08%	0.00%	-0.08%	0.08%
JPY	0.00%	0.12%	0.06%		0.14%	0.07%	-0.04%	0.14%
CAD	-0.13%	-0.03%	-0.08%	-0.14%		-0.07%	-0.17%	0.00%
AUD	-0.06%	0.04%	-0.01%	-0.07%	0.07%		-0.08%	0.07%
NZD	0.03%	0.14%	0.08%	0.04%	0.17%	0.08%		0.19%
CHF	-0.14%	-0.03%	-0.08%	-0.14%	-0.00%	-0.07%	-0.19%

Percentage movements between the major currencies are displayed in the heat map. Select the base currency from the left-hand column and the quote currency from the top row. For instance, choosing the Swiss Franc on the left and following that row across to the US Dollar gives the percentage change for CHF (base)/USD (quote) in the corresponding cell.