In its latest interest-rate decision on September 24, the Swiss National Bank (SNB) announced that it would keep the policy rate unchanged at 0.00%, fully in line with the widely expected 0.00% outcome in the market and matching the prior value. From a technical perspective and in terms of the macro data cadence, this expected move of standing pat removes tail risks in the short-term FX and interest-rate markets.
By choosing to maintain a zero-interest benchmark, the SNB confirms that inflation pressures in Europe’s core regions have been effectively brought under control, and there is no need for further tightening of liquidity. For the global macro environment, the central bank’s continued accommodative, low-rate stance locks in stable expectations for European liquidity, avoiding an adverse impact from passive tightening on cross-market arbitrage trades (Carry Trade).
In terms of asset price linkages, this decision effectively suppresses the one-way appreciation momentum of the safe-haven currency, the Swiss franc. It is favorable for the US Dollar Index, which should continue to trade in a tight range around key support levels while digesting the move. A low-cost liquidity environment continues to help underpin global risk assets; the bond yield curve remains steady, creating room for further technical rebounds in stock indices and commodities.
For crypto assets, the main central banks’ tone of remaining accommodative or staying put acts as a catalyst supporting the continued rise in risk appetite. As funding costs remain low and the macro liquidity backdrop continues to improve at the margin, $BTC has shown strong buy-side absorption power in the key support zone. The liquidity overflow effect is expected to help the crypto market kick off a new round of breakout momentum.🚀
#SwissNationalBank #InterestRates #CryptoLiquidity
By choosing to maintain a zero-interest benchmark, the SNB confirms that inflation pressures in Europe’s core regions have been effectively brought under control, and there is no need for further tightening of liquidity. For the global macro environment, the central bank’s continued accommodative, low-rate stance locks in stable expectations for European liquidity, avoiding an adverse impact from passive tightening on cross-market arbitrage trades (Carry Trade).
In terms of asset price linkages, this decision effectively suppresses the one-way appreciation momentum of the safe-haven currency, the Swiss franc. It is favorable for the US Dollar Index, which should continue to trade in a tight range around key support levels while digesting the move. A low-cost liquidity environment continues to help underpin global risk assets; the bond yield curve remains steady, creating room for further technical rebounds in stock indices and commodities.
For crypto assets, the main central banks’ tone of remaining accommodative or staying put acts as a catalyst supporting the continued rise in risk appetite. As funding costs remain low and the macro liquidity backdrop continues to improve at the margin, $BTC has shown strong buy-side absorption power in the key support zone. The liquidity overflow effect is expected to help the crypto market kick off a new round of breakout momentum.🚀
#SwissNationalBank #InterestRates #CryptoLiquidity