SNB: Swiss franc remains highly valued and the situation on FX market is still fragile

"Since the last monetary policy assessment, the Swiss franc has weakened against the euro and appreciated against the dollar. Overall, this development is helping to reduce, to some extent, the significant overvaluation of the currency. The Swiss franc nevertheless remains highly valued, and the situation on the foreign exchange market is still fragile," Swiss National Bank said in its quarterly bulletin.

Key highlights:

• The negative interest rate and the SNB’s willingness to intervene in the foreign exchange market as necessary therefore remain essential in order to reduce the attractiveness of Swiss franc investments and thus ease pressure on the currency.
• Tthe conditional inflation forecast has been revised upwards slightly compared to June.
• For the current year, the forecast has risen marginally to 0.4%, from 0.3% in the previous quarter.
• The positive baseline scenario for the global economy continues to be subject to risks. 
• In Switzerland, an analysis of the available economic indicators suggests that the moderate recovery is continuing.