CHF strengthened on the SNB decision
- Benchmark rate unchanged at 0.0-0.25%
- Deposit rate unchanged
- EUR/CHF floor held at 1.2000
The Swiss National Bank didn’t change its policy at today’s meeting, while some traders expected that the regulator will introduce negative interest rate on deposits. As a result, CHF strengthened. EUR/CHF fell to 1.2065, while USD/CHF corrected towards 0.9360.
The SNB said though that CHF is still high, risk of deflation in Switzerland has once again increased, while economic outlook has significantly worsened. The SNB said that it’s ready to act immediately if necessary (interventions). However, the market expected more, and CHF got support.