Following the Swiss National Bank's (SNB) decision to hike its policy rate by 50 basis points on Thursday, Chairman Thomas Jordan noted that the Swiss franc was no longer highly valued because of the recent depreciation, per Reuters.

Additional takeaways

"Tighter monetary policy aims to prevent the spread of inflation more broadly in Switzerland."

"Without policy rate rise today, forecast inflation would be much higher."

"There are signs inflation is spreading to goods and services not affected by Ukraine and pandemic."

"Price increases are being passed on more quickly and more readily accepted than in the past."

"There was a risk of second-round effects if inflation stays above 2% for a long time."

"Central bank is ready to intervene in markets to check excessive appreciation or weakening of the Swiss franc."

Market reaction

The USD/CHF pair stays under heavy bearish pressure following these comments and was last seen losing 1.3% on the day at 0.9817.