RANsquawk Quick Take: SNB Tweaks CHF Language, But The Dovish Message Is Reaffirmed Alongside A Cut In GDP Forecasts

RANsquawk Quick Take: SNB Tweaks CHF Language, But The Dovish Message Is Reaffirmed Alongside A Cut In GDP Forecasts

The Swiss National Bank left its 3-month Libor target band unchanged at -1.25% to -0.25%, with the sight deposit rate left at -0.75%, in line with the universal consensus.

All eyes were on the SNB’s rhetoric surrounding the CHF. The central bank tweaked its comments on the domestic currency stating that “recent development is reducing, to some extent, the significant overvaluation of the CHF,” although it did note that the currency is still "highly valued.” This represented a slight departure from its heavily worn “significantly overvalued” phrasing. The central bank also reiterated its pledge to intervene in FX markets if needed and that the presence of a negative interest is “essential.”

Full Piece Available Here

14 Sep 2017 - 09:30- Economic Commentary- Source: RANsquawk

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