- Only future will tell if FX interventions were successful
- SNB may reduce balance sheet over time by selling FX reserves
- Will be a challenge to sterilize excess liquidity in the good times over the medium-term
- SNB unlikely to use asset side of balance sheet as a regular monetary policy instrument
- Any extension of balance sheet should be reserved for when conventional monetary policy is no longer feasible
Highlights from a research paper co-authored by SNB VP Jordan. Nothing surprising or market moving.
