Swiss National Bank leaves expansionary monetary policy unchanged

I´m glad these guys are carefull, and not blow peoples´acount with black swans again, they did cause a lot of pain a couple of years ago...

I knew they will leave it unchanged cos CHF is already overpriced.

An adjustment of interest rate policy would not cause a black swan event.

That was the result of being strapped into a capped rate against the Euro which was no longer appropriate. Removing the cap caused a rapid revaluation through an area where there were zero resting orders. No buy and No sell orders. Because there were no resting orders, price needed to find a level at which traders were prepared to step into the market and sell CHF and Buy EUR. Until this level was found there was just a vacuum for price to gap across.

It was a similar situation to the Pound leaving the ERM in 1993, except SNB just got on with it knowing they could stabilise their currency later rather than fighting the inevitable as BOE and HM Treasury tried to do...

Someone earlier this week said the economy was booming- journalistic hyperbole? Negative interest rates wiil continue in this glacial juggernaut of negligible growth momentum. The point about 2016 was a central bank deliberately lying to the markets before the decision was taken. Explain that to your kids and to the families of those whose livelihoods disappeared in an instant.