The Swiss National Bank’s decision to step up its currency interventions in the face of the Covid-19 shock was a necessary response to a wave of capital seeking a safe haven, SNB chief Thomas Jordan argued on July 14.

Despite the policy rate in Switzerland remaining at -0.75%, monetary easing by other central banks in response to the pandemic cut the interest rate differential, encouraging capital flows. This was reinforced by high uncertainty, which pushed investors to seek safety, Jordan said

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