SNB chairman Schlegel: Our main instrument is the policy rate

• With that we can influence the economy and exchange rate
• There is still room for further rate cuts
• We are also ready to intervene in the FX market if necessary
• This step is intended to stabilise inflation between 0% and 2%

Schlegel is mainly clarifying that the change in wording today doesn’t mean that rate cuts are off the table going into next year. Besides that, he’s also making sure markets know that while there is a focus on their rate decisions, FX interventions are also as key an element to be mindful about when watching the franc.

This article was written by Justin Low at www.forexlive.com.