Swiss National Bank chairman Jordan with his press conference 16 June 2016
- Brexit vote may cause uncertainty, turbulence
- will monitor situation closely and act if required
- will to take active role in FX market
- political events could escalate, hurt growth
- franc remains significantly overvalued
- neg rates absolutely essential tool
- inflation revised higher due to oil prices
Opening comments of board membe Maechler too.
Risk sentiment deteriorated markedly at the beginning of 2016 due to weak economic data worldwide and a sharp decline in oil prices. Volatility increased temporarily during this period, leading to significant losses on the equity markets (slide 1). In mid-February, investors' risk appetite returned for a time, thanks to a stabilisation of oil prices and, in particular, improved economic data in the US, China and the euro area. However, by the beginning of June, investor confidence had once again come under pressure due to concerns about a possible exit of the UK from the EU.
With the exception of the US and the emerging markets, the major share indices are trading significantly lower than at the beginning of the year. This turbulence caused many market participants to seek refuge in safe investments.
Earlier this morning the SNB left interest rates on hold as widely expected.
On Monday I wrote this on the SNB/Brexit scenario.
Meanwhile USDCHF little changed at 0.9606. EURGBP 1.0825
