The Swiss National Bank on the 24th left its policy rate unchanged at 0%. The hold was in line with expectations. The central bank said it is prepared to act in foreign exchange markets as necessary to ensure appropriate monetary conditions, as the Swiss franc softens. In its statement, it noted that while inflation has risen since June, mainly due to higher energy prices, the build-up of medium-term inflationary pressure has remained modest. The August consumer price index accelerated to 0.8% year on year, double July's pace, but remained within the 0% to 2% range the central bank defines as price stability. The central bank used softer language than before, when it said it was stepping up its readiness to intervene in markets to curb a rapid and excessive rise in the franc.
SNB held its policy rate at 0% as expected, keeping Swiss yields anchored; no change in the rate itself.
SNB held rates at 0% and softened its intervention language as the franc softens, a relative negative for CHF versus USD.
