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SNB holds interest rate, reiterates readiness to intervene in FX market

SNB holds interest rate, reiterates readiness to intervene in FX market

The Swiss National Bank (SNB) decided to hold its interest rates at negative levels to continue to stimulate the economy to recover from the corona pandemic hit.

As predicted by economists, the SNB left interest rate at -0.75 percent to stick to its ultra-loose monetary policy stance.

The central bank also retreated readiness to intervene in the foreign currency markets as necessary to restrain the strength of the Swiss franc.

As of 07:50 GMT, the euro traded higher versus the franc at 1.0675 after hitting a high of 1.0662, doing attempts to lock a daily gain.

Meanwhile, global central banks are continuing with stimulus plans to bolster recovery, where Fed Chair Jerome Powell urged Congress on Wednesday not to halt economic support to the economy, while European leaders will discuss a proposed 750-billion-euro aid package on Friday.

Later in the day, the Bank of England may expand its bond-buying asset purchase programme by 100 billion pounds to 150 billion pounds.

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