- Forex market interventions may be necessary to ensure price stability
- Current Swiss franc value is more down to dollar being weak than stronger franc
- The bar for taking rates into negative territory is higher than it is for cutting rates when above zero
- Past experience shows negative rates have worked
- However, they create more challenges for banks, investors, households
- We don’t see risk of deflationary developments
- Inflation dynamics in Switzerland should not be dramatically disrupted by recent dollar movements
- We currently have no reason to increase or reduce gold holdings
- Bitcoin does not meet our criteria for assets
These are all more or less token remarks given how they have been operating since almost forever now. The points on negative rates are perhaps the most interesting, although markets are not anticipating any more rate cuts for this year at least.
This article was written by Justin Low at investinglive.com.