“SNB will intervene in the foreign-exchange market as necessary” – SNB’s Zurbruegg

FXStreet (Mumbai) - Swiss National Bank (SNB) board member Fritz Zurbruegg said on Thursday that the country’s central bank is prepared to purchase foreign currencies if needed, as the franc remains “significantly overvalued.”

Key Quotes:

The SNB's decision to remove the franc's cap “doesn’t mean that we will simply be a passive observer”,

“(SNB) will intervene in the foreign-exchange market as necessary in order to influence monetary conditions.”

“Sustained negative inflation, or even a deflationary spiral -– a negative feedback loop involving an economic downtrend and falling price levels -– is thus not expected,”

Negative rates “will certainly pose a challenging phase” for the Swiss economy.