The Swiss franc rallied today after the Swiss National Bank kept monetary policy unchanged. However, the main reason for the Swissie’s rally was the market sentiment that favored safer currencies.
The SNB left interest rates unchanged at today’s meeting, with the sight deposit rate staying at -0.75%. The central bank commented on the decision:
The expansionary monetary policy continues to be necessary given the latest international developments and the inflation outlook in Switzerland. The situation on the foreign exchange market is still fragile, and the Swiss franc has appreciated in trade-weighted terms. It remains highly valued.
The bank also lowered its projections for inflation and economic growth in 2019, 2020, and 2021.
USD/CHF sank from 0.9972 to 0.9914 as of 18:02 GMT today. EUR/CHF plunged from 1.0998 to 1.0963.
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