Swiss Central Bank Sticks to Forex Tool Amid Us Criticism
The Swiss National Bank has reaffirmed its commitment to using interest rates and currency interventions to steer monetary policy, despite the risk of being labeled a "currency manipulator" by the United States. Chairman Martin Schlegel stated that the bank's mandate is to ensure stable prices for Switzerland, and it will continue to use various levers to achieve this goal. The Swiss franc has not been intentionally weakened to gain a trade advantage, as previously argued by the bank.
- The long-standing tension between Switzerland and the US over currency manipulation may be an opportunity for other countries to reassess their own monetary policies and explore alternative approaches.
- Will the European Central Bank take cues from the Swiss National Bank's stance on forex interventions and adjust its own monetary policy framework in response?