The Swiss National Bank (SNB) recorded in the first three quarters of the year a net profit of 28.7 billion francs. The gold holdings generated a gain of 7.5 billion while foreign currency investments of 20.3 billion.
The profit on Swiss franc positions amounted to 1.3 billion. In the same period of 2015 the institute had accumulated a loss of 33.9 billion.
The Swiss National Bank (SNB) should close the third quarter with a profit oscillating between seven and nine billion francs, mainly due to the favorable performance of the stock markets, according to UBS estimates.
The gold market, the foreign currencies position and bond markets are slightly wavy. The report on the exercise of the SNB for the July-September quarter is expected on October 31.
The ECB did not announce changes to its monetary policy last week. Draghi also gave no indication as to possible future action, as he often used to do, and has categorically refused to comment on any potential evolution of the QE program (purchase of stocks, bank bonds or even helicopter money).
The Swiss National Bank (SNB) left unchanged its monetary policy: the 3-month Libor remains between -1.25% and -0.25% while the deposit rate is at -0,75%. "The negative interest rate and the SNB’s willingness to intervene in the foreign exchange market are intended to make Swiss franc investments less attractive, thereby easing upward pressure on the currency", the SNB wrote in the note. For 2016 as a whole, the SNB now expects growth of approximately 1.5%.
The institute also reaffirms its intention to remain active on the currency market if necessary. The decision does not represent a surprise: they were expected by all experts polled by Reuters last week.
