SNB doesn’t rule out lowering interest rates further – SNB’s Jordan

In an interview with Swiss magazine Bilanz on Thursday, Swiss National Bank (SNB) Chairman Thomas Jordan reiterated that Swiss franc still remains ‘overvalued’, while adding that he doesn’t rule out slashing interest rates further.

Key Quotes:

We have gone relatively far with the negative interest rates. At present we are monitoring the situation closely. We do not rule out anything

For this purpose (to weaken the franc), we have negative interest rates and we are ready to intervene in the forex market

The franc remained overvalued but would likely weaken over time. The overvaluation is less important than it was a year ago

Turbulence in Europe could put Franc back in focus as a safe-haven currency

Inflation is negative at the moment and lower than we would like it to be

Our monetary policy that is very expansive is aiming to push it back into positive territory in the medium term