SNB Can Intervene in FX Market Again If Needed, Schlegel Says

The Swiss National Bank President, Martin Schlegel, discusses the recent interest rate cut due to lower inflation pressures. He explains the factors behind disinflation, such as energy and food prices, and the importance of timely monetary policy. Schlegel addresses the potential for negative interest rates and the Swiss franc's role as a safe haven amid geopolitical risks. He emphasizes the bank's mandate for price stability and readiness to intervene in the FX market if necessary. Schlegel also reflects on the removal of the Euro Swiss floor, highlighting the challenges and strategies involved.

What was the primary reason for the Swiss National Bank's recent interest rate cut?

• Rising energy prices

• Decrease in inflationary pressure

• Strengthening of the Swiss franc

• Increase in inflationary pressure

Why might the Swiss National Bank consider using negative interest rates again?

• To address geopolitical risks

• To decrease inflation

• To make the Swiss franc more attractive

• To increase inflation

How does the Swiss National Bank view the Swiss franc in terms of its strength?

• Unstable on a trade-weighted basis

• Appropriate for the economy

• Too weak against the euro

• Too strong against the dollar

What is the Swiss National Bank's primary mandate?

• Geopolitical risk management

• Currency manipulation

• Price stability

• Interest rate reduction

What was a significant past decision made by the Swiss National Bank regarding the Euro Swiss floor?

• Increasing the floor

• Removing the floor

• Decreasing the floor

• Establishing a new floor

What is the Swiss National Bank's stance on currency interventions?

• They are avoided due to US sensitivities

• They are used if necessary

• They are always used

• They are never considered

What was the impact of removing the Euro Swiss floor according to the Swiss National Bank?

• It was unnoticed by the market

• It led to a stronger Swiss franc

• It stabilized the Swiss economy

• It caused a significant market shock