SNB Policy Won’t Change Due to U.S. Watchlist, Maechler Says

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The Swiss National Bank isn’t being swayed by the U.S. when it comes to currency interventions, according to Governing Board Member Andrea Maechler.

Speaking at an event in Lausanne on Wednesday, Maechler replied “no” in response to the moderator’s question whether the U.S. decision to put Switzerland back on its currency watch list would alter policy.

“We are doing monetary policy for Switzerland,” she said.

The comments keep alive the prospect of interventions in the currency market if the franc continues to appreciate. It’s currently near the strongest level since 2017.

Along with a a deposit rate of -0.75%, the intervention threat is part of the SNB’s long-running policy to tame the haven franc, whose rise pushes down inflation. Maechler reiterated the pledge to intervene if needed.

The policy has caused the central bank’s balance sheet to balloon, and the negative rates are unpopular with financial institutions.

In response to a question about when the SNB might end negative rates, Maechler answered: “As soon as it’s possible.”

To contact the reporter on this story: Catherine Bosley in Zurich at cbosley1@bloomberg.net

To contact the editor responsible for this story: Fergal O'Brien at fobrien@bloomberg.net

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