Updated
Updated · Bloomberg · Jun 18
SNB Keeps Rates at 0%, Maintains Franc Intervention Threat as Iran War Risks Persist
Updated
Updated · Bloomberg · Jun 18

SNB Keeps Rates at 0%, Maintains Franc Intervention Threat as Iran War Risks Persist

2 articles · Updated · Bloomberg · Jun 18

Summary

  • The Swiss National Bank left borrowing costs at 0% and repeated its “increased” willingness to intervene in the franc market.
  • That stance is aimed at shielding Switzerland from renewed geopolitical turmoil, with policymakers still citing fallout from the Iran war.
  • President Martin Schlegel and colleagues kept the intervention language unchanged even after expectations that the bank might revisit its franc rhetoric this week.
  • The decision signals the SNB still sees haven-driven franc strength as a risk if Middle East tensions flare again.

Insights

With a Mideast peace deal ironically strengthening the franc, can the Swiss National Bank escape its currency's safe-haven curse?
As experts call the U.S.-Iran deal a 'flawed peace,' is the Swiss franc's current stability just the eye of the storm?