Swiss National Bank intervened in currency markets to limit Swiss Franc appreciation amid safe-haven inflows and low inflation.
The Swiss National Bank sold CHF3.9 billion worth of foreign currency in the first quarter to counter Swiss Franc strength, according to official data. The intervention aims to curb speculative buying and prevent excessive appreciation driven by safe-haven demand amid geopolitical tensions.
With inflation remaining low and growth risks modest, the SNB is expected to maintain FX intervention as a key policy tool. Rate hike prospects remain finely balanced, particularly if the European Central Bank adopts a more hawkish stance. SNB President Schlegel reiterated the central bank’s readiness to intervene if needed.
The SNB’s approach reflects a cautious balance between managing currency risks and monetary policy, as the Franc’s relative strength continues to influence its decisions.