Swiss National Bank chief says Middle East uncertainty persists

Investing.com -- Swiss National Bank Chairman Martin Schlegel said today that the situation in the Middle East remains highly uncertain, noting the central bank had evaluated recent developments before finalizing its monetary policy decision.

"The situation is still very uncertain," Schlegel said when asked about the U.S.-Iran peace deal. He added that it could not be excluded that the deescalation of the conflict was only temporary.

Schlegel said uncertainty remains elevated and energy markets are largely influenced by the situation in the Middle East. He noted that geopolitical and trade uncertainty is very high.

Regarding currency intervention, the chairman said the central bank's readiness to intervene in the foreign exchange market is higher if necessary, though he stated it is difficult to say if it is more or less than before. He added that the franc has weakened slightly since the last meeting.

Schlegel said the bank looks at the whole situation when it comes to interventions. He noted that many factors affect the exchange rate, including the interest rate differential to the European Central Bank and the bank's increased readiness to intervene.

The chairman said future development depends on the situation in the Middle East. He also stated there are no plans for delisting of the Swiss National Bank.

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