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SNB minutes point to greater readiness to curb excessive CHF gains

SNB said monetary conditions are appropriate and inflation pressures are virtually unchanged, while it flagged a still-present risk of strong franc appreciation.

Reported · Written up by our desk · Central Banks

FXStreet highlighted key takeaways from Swiss National Bank (SNB) June policy meeting minutes, noting that the SNB assessed monetary conditions as appropriate and reported inflation pressures were virtually unchanged.

The minutes also indicated an increased willingness to intervene if needed, with the bank saying there is no immediate need for action. FXStreet cited uncertainty around developments in the Middle East, including heightened uncertainty tied to Iran war-related risks and a rise in companies' short term inflation expectations.

FXStreet added that the franc has remained muted after the minutes, with USD/CHF in European trade rising to near 0.8066 on slight US dollar gains.

The piece further reiterated that the SNB sees excess Swiss franc appreciation as a concern and maintains price stability as its mandate, aiming for Swiss CPI growth of less than 2% per year. It said the SNB would use its policy rate and, if required, FX market interventions to manage too-strong currency moves.

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