PBOC Maintains Yuan Rate, SNB Keeps Policy Rate at 0%

The People's Bank of China (PBOC) has stated that it is reasonable to maintain the yuan exchange rate at a balanced level.

This comes as New York Federal Reserve President John Williams expressed his expectation for another interest rate hike from the Federal Reserve by the end of this year, suggesting that it may be 'reasonable' to expect one. However, the PBOC's focus remains on managing the yuan's value in a way that supports economic development.

In other news, Iran's Supreme Leader Ali Khamenei's adviser, Yahya Rahim Safavi, has warned of potential conflict expansion beyond the Persian Gulf and into the Indian Ocean if US or Israeli attacks continue. The Swiss National Bank (SNB) also announced its decision to maintain its policy rate at 0%, with a willingness to intervene in foreign exchange markets as necessary.

The SNB's statement comes amidst rising inflation, which increased from 0.6% in May to 0.8% in August, primarily driven by higher energy prices. The bank expects moderate growth for the coming quarters and believes its monetary policy is appropriate to keep inflation within a stable range.