The Swiss National Bank (“SNB”) is the central bank in Switzerland and is wholly responsible for dictating the country’s monetary policy and issuing its national currency, the Swiss franc (“CHF”).
In contrast to most other central banks, the SNB has the power to determine an interest rate band, rather than a specific target interest rate. Similarly to Japan as well, the Swiss economy is heavily dependent on exports, which means the SNB has no desire to see the CHF become too strong. Consequently, it is known to be conservative with interest rate hikes.
Swiss monetary policy is decided by a three-person SNB committee who meet quarterly.