Technical Analysis

This shows how the SNB has switched its focus to fighting inflation this year


At some point in the past five to six years, it was a wonder as to how the Swiss central bank will ever be able to escape negative rates and spur inflation in the economy – much like Japan. Yet, here we are now where policymakers have not only moved on from that but are now actively having to step into the market to strengthen the Swiss franc instead.

That last line is definitely something I’d never thought to be typing, even at the start of the pandemic.

The latest balance sheet data from the SNB shows that the central bank sold foreign currencies worth CHF 739 million in Q3 2022, exemplifying how their focus has shifted from curbing and smoothing out the appreciation in the franc currency over the years to fighting inflation this year. That comes of course amid their change in policy stance as well.

How the times have changed.

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