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 significance of the Swiss franc being overvalued according to the text?

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How does the Swiss National Bank evaluate its interventions in foreign exchange markets?

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