SNB's Jordan: No Limits to Foreign-Reserve Interventions

The transcript discusses the Swiss National Bank's (SNB) approach to maintaining low interest rates due to a strong currency and low inflation. SNB President Thomas Jordan explains the economic growth challenges and the overvaluation of the Swiss franc. He mentions that further rate cuts are possible, depending on inflation forecasts and economic conditions. The SNB is committed to its current monetary policy, including negative interest rates and potential interventions in the foreign exchange market. Despite having significant exchange reserves, the SNB is prepared to continue interventions if necessary, based on a cost-benefit analysis.

What is the main reason the SNB is keeping interest rates at record lows?

• Increased foreign investments

• High inflation rates

• Strong currency and lack of price pressures

• Rapid economic growth

What is the current growth rate of the Swiss economy as mentioned in the video?

• 3.0%

• 1.1%

• 2.5%

• 0.5%

What is the SNB's current stance on further rate cuts?

• They are completely ruled out

• They are not excluded and depend on economic conditions

• They are already implemented

• They are scheduled for next quarter

What is the current negative interest rate maintained by the SNB?

• -0.25%

• -1.00%

• -0.50%

• -0.75%

What is the SNB's approach to foreign exchange interventions?

• They conduct interventions only during economic crises

• They have a strict limit on interventions

• They perform interventions based on cost-benefit analysis without a specific limit

• They avoid interventions to maintain market stability