September 12, 2019 / 12:06 PM / 3 months ago

Swiss National Bank stays mum on policy after ECB eases further

The Swiss National Bank (SNB) is seen in Bern, Switzerland September 3, 2019. REUTERS/Arnd Wiegmann

ZURICH (Reuters) - The Swiss National Bank declined to comment about the possible implications for its own monetary policy after the European Central Bank on Thursday decided to lower its deposit rate and restart its bond buying program.

Further easing by the ECB heaps pressure on the SNB to relax its already ultra-expansive policy based on a negative interest rate of -0.75% and currency market interventions to reduce upward pressure on the safe-haven Swiss franc.

Despite these measures the franc has hit a two-year high against the euro EURCHF= on concerns about the global economic slowdown, trade tensions between the United States and China, and problems in the eurozone.

The franc was trading at around 1.09 versus the single currency. Markets give a 44% probability the SNB will cut its interest rates by 25 basis points when it holds its quarterly policy review next week, according to Refinitiv data.

Reporting by John Revill; Editing by Michael Shields

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