Swiss National Bank policy remains unchanged

Source: Dukascopy Bank SA
On March 24, the Swiss National Bank issued its Monetary Policy Assessment and revealed Policy Rate. In general, monetary easing is set to continue, as the rate remains at -0.75%. Moreover, the bank has clearly stated that it is going to get involved in the Forex markets and will push the Swiss Franc down.

Quoting the statement: "The SNB is retaining its expansionary monetary policy. It is keeping the SNB policy rate and interest on sight deposits at the SNB at −0.75% and is willing to intervene in the foreign exchange market as necessary, in order to counter upward pressure on the Swiss franc. In so doing, it takes the overall currency situation and the inflation rate differential with other countries into consideration.

The Swiss franc remains highly valued. Russia's invasion of Ukraine has led to a strong increase in uncertainty worldwide. Against this backdrop, the SNB with its monetary policy is ensuring price stability and supporting the Swiss economy."

Released Document

Monetary policy assessment of 24 March 2022

The USD/CHF reacted to the announcement with a minor decline of 15 base points over a period of 15 minutes. However, afterwards, during the next 15 minutes the rate recovered 22 points, before returning to pre-announcement levels.

On a larger scale, the rate has been surging in a channel up pattern since May 2021. Most recently, the pair approached the upper trend line of the pattern and the 2021 high level. However, a decline started, before these levels were properly reached.

Initial Reaction

Larger scale situation

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