ZURICH Feb 2 The Swiss National Bank will be
able to normalise its monetary policy and shrink its massive
balance sheet in the future, a member of the bank's expanded
governing board said on Thursday.
Dewet Moser said it would be possible for the SNB to
normalise its balance sheet, which has become larger than
Switzerland's gross domestic product as the central bank bought
foreign currency to weaken the Swiss franc.
"Monetary policy is not a simple thing," Moser told an event
in Zurich. "It would certainly be possible to normalise in the
future," he added, referring to the bank's balance sheet.
"We have instruments in place, the mandate; we have all the
ingredients to do this."
Currency market interventions and negative interest rates
have been the cornerstones of the SNB's efforts to rein in the
Swiss franc, which the central bank has consistently described
as "significantly overvalued."
Speculation has arisen in recent days that the bank has
scaled back its interventions as the franc has risen to its
highest level versus the euro since Britain voted to leave the
European Union last June.
(Reporting by John Revill; editing by Brenna Hughes Neghaiwi)