SNB should clearly assign policy tools, IMF report says
SNB can avoid impression of exchange-rate targeting through better communication
The International Monetary Fund has advised the Swiss National Bank to clearly assign its policy tools in order to avoid the impression it is “targeting the exchange rate”.
Currently, the SNB uses the interest rate and interventions in the forex market to manage changes in inflation. But specifying when to use which tool, the fund says, could enhance the central bank’s communication.
“Intervention should be reserved for responding to volatility associated with foreign exchange market surges
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