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SNB's Moser says it will be able to normalise monetary policy in future
February 2, 2017 / 3:30 PM / 10 months ago

SNB's Moser says it will be able to normalise monetary policy in future

ZURICH, Feb 2 (Reuters) - 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)

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