Core Viewpoint - The Polish central bank is considering intervening in the foreign exchange market to stabilize the currency [1] Group 1 - The potential intervention is a response to fluctuations in the Polish zloty [1] - The central bank aims to maintain economic stability and control inflation through these measures [1] - Market analysts are closely monitoring the situation for any signs of action from the central bank [1]

Core Viewpoint - The Swiss franc experienced a significant decline in the first quarter, yet the Swiss National Bank refrained from intervening in the foreign exchange market for the fifth consecutive quarter [1] Group 1: Swiss National Bank Actions - The Swiss National Bank purchased only 49 million Swiss francs in foreign exchange from January to March, maintaining a consistent low level of intervention compared to previous quarters [1] - The decision not to intervene suggests that officials see no reason to act, especially after a surprising rate cut in December 2022 that led investors to withdraw funds from the Swiss franc [1] Group 2: Currency Performance - In the first quarter, the Swiss franc depreciated by 1.7% against the euro while appreciating by 2.8% against the US dollar [1] - The appreciation against the US dollar may be linked to heightened trade tensions, particularly following President Trump's announcement of comprehensive tariffs on April 2, which caused the Swiss franc to reach a historical high against the dollar [1]

Core Viewpoint - The Bank of Thailand is reportedly preparing to intervene in the foreign exchange market to curb market volatility [1] Group 1 - The central bank's intervention aims to stabilize the Thai baht amid fluctuations [1] - The decision reflects concerns over excessive volatility in the currency market [1] - The Bank of Thailand's actions may influence investor sentiment and market dynamics [1]

Group 1 - The Bank of Thailand is reportedly preparing to intervene in the foreign exchange market to curb market volatility [1]

Core Viewpoint - The central bank of Indonesia will continue to intervene in both offshore and onshore non-deliverable forward and spot foreign exchange markets to ensure that the Indonesian rupiah reflects its fundamentals [1] Group 1 - The Indonesian central bank is focused on maintaining the stability of the rupiah through market interventions [1] - The interventions will target both non-deliverable forwards and spot foreign exchange markets [1] - The aim is to ensure that the currency accurately reflects the underlying economic fundamentals [1]

Core Viewpoint - The Swiss National Bank (SNB) is prepared to intervene in the foreign exchange market to achieve its inflation targets, despite being recently placed on the U.S. currency manipulation watchlist [1] Group 1 - The SNB's readiness to intervene indicates a proactive approach to managing inflation [1] - The inclusion on the U.S. currency manipulation watchlist may influence the SNB's strategies and market perceptions [1]

Group 1 - The Swiss National Bank (SNB) has lowered the benchmark interest rate by 25 basis points to 0% in response to weak inflation, the appreciation of the Swiss franc, and uncertainties from U.S. trade policies, marking the sixth consecutive rate cut since March 2024 [1][4] - Switzerland's inflation rate fell to negative territory in May for the first time since 2021, with economists predicting an average inflation rate of only 0.3% in 2025 and 0.6% in 2026 [1][4] - The strong Swiss franc has been driven by increased safe-haven demand following U.S. tariffs announced in April, leading to an 8% appreciation against the U.S. dollar, which could negatively impact domestic inflation and exports [4][5] Group 2 - The SNB's decision to lower rates aims to prevent further appreciation of the Swiss franc, which could harm exporters and exacerbate low inflation [4][5] - The current benchmark rate of 0% returns to the level seen in September 2022, after the end of a seven-year negative interest rate policy, raising discussions about the potential reimplementation of negative rates [4][5] - The SNB is cautious about reintroducing negative rates due to the challenges they pose to various economic participants, including savers and pension funds, and is considering all options, including foreign exchange market interventions [5][6] Group 3 - The global economic outlook remains uncertain, with potential trade barriers that could further slow growth, although stronger fiscal policies may provide unexpected support [5] - The SNB is under pressure to balance its monetary policy without being labeled a currency manipulator, especially in light of past U.S. scrutiny [5][6] - Political considerations suggest that the SNB should remain cautious and avoid appearing eager to reintroduce negative rates, which could have broader implications for its economic strategy [6]

Core Viewpoint - The Swiss franc is perceived by investors as a safe-haven asset during crises, and the Swiss National Bank is prepared to intervene in the foreign exchange market if necessary [1] Group 1 - The Swiss National Bank Governor highlighted the role of the Swiss franc as a safe-haven asset amid ongoing crises [1] - The central bank is ready to take action in the foreign exchange market to stabilize the Swiss franc if required [1]

Group 1 - The Swiss National Bank (SNB) is responsible for Switzerland's monetary policy and does not set exchange rate targets [1] - Past interventions in the foreign exchange market were not aimed at providing unfair advantages to Swiss companies [1]

Core Insights - The Swiss National Bank is prepared to intervene in the foreign exchange market if necessary [1] - GDP growth is projected to be between 1% and 1.5% for both 2025 and 2026 [1] - The unemployment rate may continue to rise slightly [1]