We evaluate if and how the SNB could soften the blow, and whether it should.

With the recent reduction of the policy rate, the SNB has moved closer to zero or negative rates. Some argue that this was unwise; the SNB should have kept its gun powder dry to have more room for manoeuvre in the future. We ...]]> With the recent reduction of the policy rate, the SNB has moved closer to zero or negative rates. Some argue that this was unwise; the SNB should have kept its gun powder dry to have more room for manoeuvre in the future. We explain why we see little merit in this reasoning.ders to the SNB’s Governing Board.

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The Swiss National Bank (SNB) reported a CHF 80 billion profit for 2024, planning a CHF 3 billion distribution to the Confederation and cantons. The SNB’s equity ratio stood at 7.9% in 2023. We propose that the SNB should ann...]]> The Swiss National Bank (SNB) reported a CHF 80 billion profit for 2024, planning a CHF 3 billion distribution to the Confederation and cantons. The SNB’s equity ratio stood at 7.9% in 2023. We propose that the SNB should announce a target for the equity ratio—rather than a distribution rule—and agree it with the Federal Department of Finance. This approach would enhance transparency and shift the…

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The SNB has acknowledged that foreign exchange market interventions are a full‐fledged
monetary policy tool. Indeed, well‐timed interventions have contributed to achieving one
of the world’s lowest inflation rate in 202...]]> The SNB has acknowledged that foreign exchange market interventions are a full-fledged monetary policy tool. Indeed, well-timed interventions have contributed to achieving one of the world’s lowest inflation rate in 2022 and 2023. Both the use of the instrument and its recognition in the monetary policy concept are welcome, but important questions remain: Download Report…

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