SNB alternate governing board member Thomas Moser has responded to IMF suggestions that they adopt foreign currency asset-purchses by saying that they are open to the idea
What the IMF is recommending is a kind of pre-announced asset-purchase programme, among the options we are looking at
The IMF proposals came out earlier this morning and Moser's comments now out on Bloomberg have been circulating for a while so immediate impact on this news will be minimal
In its annual assessment the IMF proposed that Switzerland "ease monetary policy further" to bolster growth and reduce risks related to "very low inflation"
Purchases could consist of foreign currency assets, and perhaps some domestic assets - though scope for this is more limited - with the pace of purchases adjusted as necessary in response to developments.
In addition the policy rate should be maintained at its current negative level for now, as this has been helpful in reducing franc appreciation and deflationary pressures
Full report here
Earlier this morning I reported Moser's comments on fx intervention as per the SNB's script last week and these latest comments certainly add fuel to the fire that they have plans afoot to keep CHF from appreciating too far from here
USDCHF 0.9696 EURCHF 1.0573
