Swiss National Bank says stands ready to intervene in FX market after ditching its cap on franc

The Swiss National Bank is ready to intervene in the foreign currency market to ease monetary policy after ditching its cap on the Swiss franc earlier this month, its vice-chairman said in an interview on Tuesday.
Switzerland’s central bank shocked financial markets by abandoning its three-year-old cap on the franc against the euro on Jan. 15, a policy it later said would have cost 100 billion Swiss francs ($110.84 billion) to defend this month alone had it been maintained.
“Giving up the cap means a tightening of monetary policy. We accept this, but only up to a point. We are fundamentally prepared to intervene in the foreign exchange market,” Jean-Pierre Danthine told Swiss national daily TagesAnzeiger in an interview.
Danthine said it would take some time for the foreign exchange markets to balance out, but declined to give exact levels, saying the central bank was not only looking at the exchange rate with the euro but also with the dollar.
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