Kaiyuan Macro: The Swiss Central Bank may increase its currency intervention efforts

On September 26, the Jinshi data, Kai Tuo macro economist Adrian pretejohn said that the latest policy statement of the Swiss Central Bank shows that it did not use a large amount of forex intervention to curb the strength of the Swiss franc, but this may become a key policy tool in the near future. Kaituo Macro believes that once the Interest Rate policy falls to around 0.5%, the Swiss Central Bank will start to consider large-scale intervention in forex. By then, the Swiss Central Bank will to what extent rely on Exchange Rate intervention, rather than further interest rate cuts to obtain monetary policy support, which will be a more balanced decision.