Free Trial

Hikes Rates by 50bps, to -0.25%, Against Consensus

SNB

SNB hikes rates by 50bps to -0.25%: https://www.snb.ch/en/mmr/reference/pre_20220616_2/source/pre_20220616_2.en.pdf


Statement Highlights:

  • Tightens policy to counter increased inflationary pressure
  • Cannot be ruled out that further increases in the SNB policy rate will be necessary in the foreseeable future
  • SNB is also willing to be active in the foreign exchange market as necessary
  • SNB is also adjusting the threshold factor used to calculate the level of banks’ sight deposits at the SNB exempt from negative interest. The factor will be lowered from 30 to 28.
  • Without today’s SNB policy rate increase, the inflation forecast would be significantly higher.

Note on FX language for SNB, they've entirely dropped the reference to the CHF value - at the past rate decision they saw the CHF as "highly valued" - this no longer appears in the statement

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.