Negative policy rates prove no deterrent

Negative policy rates have not led to higher investment outflows; SNB intervention has become strategic to push the Swiss franc lower

eimear-daly-standard-chartered
Eimear Daly, G10 FX strategist, Standard Chartered

Our analysis suggests Switzerland's negative policy rates are failing to curb demand for Swiss assets. Portfolio investment outflows increased during Q1 2015, in the aftermath of the Swiss franc cap removal by the Swiss National Bank (SNB) and subsequent sharp CHF appreciation.

However, in Q2, portfolio investment flows reverted to their previous trend, suggesting Q1 was a temporary anomaly due to the shock of the unexpected policy change. The 12-month average shows net portfolio outflows are no

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact customer services - www.fx-markets.com/static/contact-us, or view our subscription options here: https://subscriptions.fx-markets.com/subscribe

You are currently unable to copy this content. Please contact info@fx-markets.com to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to FX Markets? View our subscription options

You need to sign in to use this feature. If you don’t have a FX Markets account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: