USDCHF gains as SNB's Thomas Jordan opens the door for possible cuts in interest rates in the future.
On this page, you will read about everything you need to know about the Swiss National Bank (SNB) including its latest monetary policy decisions and market-moving speeches.
The Swiss National Bank is the central bank of Switzerland and is responsible for the country’s monetary policy. The Swiss National Bank obliged to act in accordance with the interests of the country. Its goal is to ensure price stability while taking due account of economic developments. It is also responsible for the creation of an appropriate environment for economic growth.
The National Bank was founded on 20 June 1907 and has two head offices one in Berne and one in Zurich, as well as a branch office in Singapore.
Swiss National Bank’s monetary policy
The Swiss National Bank sets the SNB policy rate. The SNB seeks to keep the short-term Swiss franc money rates close to the SNB policy rate. The SNB can intervene in the foreign exchange market in order to influence the monetary conditions. The SNB’s monetary policy consists of three elements:
- the SNB equates the price stability with an increase in consumer prices of less than 2% per annum. The Swiss National Bank equates price stability with an increase in consumer prices of less than 2% per annum
- a medium-term conditional inflation forecast,
- and a target range for a reference interest rate
The Swiss National Bank conducts in-depth monetary policy assessment four times a year. In March, June, September, and December. The results of the evaluations are an interest rate decision and the outlook of medium-term inflation. The Swiss National Bank (SNB) sets out the reasons for its decisions in a press release and in a quarterly monetary policy report published in the Quarterly Bulletin.
Who Heads the Swiss National Bank?
The SNB’s executive body is the Governing Board. The Governing Board is responsible for the monetary policy, and the asset management strategy, contributing to the stability of the financial system and international monetary cooperation. The Chairman of the Governing Board is Thomas Jordan.