(Bloomberg) --
The Swiss National Bank’s foreign currency reserves rose the most in five months, a sign officials are increasingly active in countering appreciation pressure on the franc.
With the franc close to five-year high against the euro, the central bank’s activities to control the currency are coming into increasing focus. The Federal Reserve’s surprise interest rate cut this week has upped the ante on European policy makers to follow suit.
Figures published on Friday suggest the SNB may have intervened to the tune of 5 billion francs ($5.3 billion) last month. Reserves rose the most since September, to 769 billion francs. Weekly data on the amount of cash commercial banks hold with the central bank painted a similar picture.
A spokeswoman for the central bank declined to comment on the rise in reserves.
Europe’s monetary authorities have less interest-rate room to respond to the slowdown brought on by coronavirus than the U.S. Still, there’s a chance the European Central Bank will boost monetary stimulus at its meeting next week, which could force the SNB to take action too.
UBS Group AG economists say it’s “likely” that the SNB will lower its policy rate to -1% from -0.75% this month.
©2020 Bloomberg L.P.
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