2018-01-15 — reuters.com
If it raises rates, the Swiss franc strengthens. If it sells off its massive balance sheet, the Swiss franc strengthens. If a global crisis hits, the Swiss franc strengthens.
"The SNB will most probably be one of the last central banks to change course, and it will take years or even decades for monetary policy to return to `normal'," said Daniel Rempfler, head of fixed income Switzerland at Swiss Life Asset Managers.
The Bank of Japan illustrated the problem of reducing expansive policy when a small cut to its regular bond purchases sent the yen and bond yields higher.
"It is very difficult to say you are ready to intervene in the forex markets when you also winding down the balance sheet," said Florian Weber, an analyst at Bank J.Safra Sarasin.
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