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«Given the economic and politicial uncertainties, there is also the risk of major and sudden movements in the exchange rate, which would significantly alter monetary conditions,» Jordan said.

Real Estate Watch

The central bank also is keeping a close eye on the real estate and mortgage market. The Swiss banking regulator Finma has decided to undertake a stress test with major mortgage lenders, while the SNB is looking into the question of countercyclical capital buffers that domestic banks use to secure their mortgages.

The biggest worry for the bank, however, remains residential investment properties. The central bank says that the brisk construction activities had boosted availability of rented apartments to a degree that there now seems to be an oversupply in some areas of the country. This in turn is leading to downward pressure on revenue from rents and may cause prices to fall for such properties.

The finance ministry currently is looking at measures targeted at this specific part of the real estate market, said Fritz Zurbruegg, one of the central bank's three directors.

New Target Rate for Monetary Policy

Apart from activities on the financial markets, the bank also is working hard to prepare the industry for the change of target rate. The U.K. Financial Conduct Authority will stop providing the Libor, the current target rate, beyond 2021. The SNB together with private market players has founded a working group that is developing measures to ensure a seamless transition from the Libor to the new benchmark, the Saron (the Swiss Average Rate Overnight).

One of the main questions that needs to be answered is how an overnight rate can replace a longer-term rate. The working group is recommending using an average of realized Saron values for the relevant interest period (for instance the last three months).

Andrea Maechler, one of three members of the governing board, reminded all participants in the financial market to develop a thorough understanding of the issues at stake and be ready for the change.