At its September quarterly monetary policy assessment, the Swiss National Bank (SNB) hiked its benchmark sight deposit interest rate by 75 bps to 0.50% from -0.25% previous, as widely anticipated.
In the June meeting, the central bank surprised markets with a 50 bps increase, its first rate hike since September 2007. The dramatic move sent the Swiss franc surging more than 2% against the common currency.
In an initial reaction to the SNB rate hike decision, the USD/CHF pair spiked to fresh two-week highs of 0.9759, where it now wavers. The spot is adding 0.95% on the day.
About SNB Rate Decision –
The Swiss National Bank conducts the country’s monetary policy as an independent central bank. It is obliged by the Constitution and; by statute to act in the interests of the country as a whole. Its primary goal is to ensure price stability while taking due account economic developments. In so doing, it creates an appropriate environment for economic growth.
USD/CHF Long (Buy)
Enter at: 0.98047