SNB Chair Jordan: CHF is a safe-haven, NIRP and FX interventions remain necessary to meet mandate

Swiss National Bank (SNB) Chairman Thomas Jordan said on Wednesday that the Swiss franc is a safe haven, and that negative interest rate policy (NIRP) and currency interventions remain necessary for the SNB to meet its mandate on inflation. Jordan added that the SNB is ready to intervene in the currency markets when necessary and that the SNB also takes into account the higher inflation rates abroad when setting policy.

Jordan noted that the inflation rate in Switzerland will temporarily rise about the 2.0% target, but will reduce quickly, though the central bank remains ready to act if inflation strengthens. The SNB is not a hostage to other central banks, Jordan noted, stating that the bank leads its own independent monetary policy.