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SNB removes FX floor

In September 2011, the Swiss National Bank set a minimum exchange rate against the euro at 1.20. This was imposed owing to the massive overvaluation of the Swiss France at the height of the eurozone crisis.

Swiss franc
Source: Bloomberg

In a surprise move today, the SNB has lowered its benchmark deposit rate to -0.75% and removed the 1.20 EUR/CHF floor, stating that the decision is to ensure against inappropriate tightening of monetary conditions.

The announcement has come as a shock to the market, and given the dramatic moves in the euro it is now wholly expected that the European Central Bank is to announce a full-scale quantitative easing programme in its next meeting on 22 January.

Read SNB statement

There will be a live press conference at 12.15 GMT where we can expect to hear more detail on this dramatic decision.

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