SNB & CHF

Cluster bombs are reviled for their indiscriminate effect and potential to kill and maim people if unexploded - Click to enlarge The leading Swiss state pension fund, Publica, has announced that it plans to disinvest from five weapons companies. This follows a national campaign by a responsible investment pension group to blacklist 15 international arms firms. According to a report by Swiss public radio, SRF, Publica,...

This Great Graphic was posted by Steve Goldstein at MarketWatch. The blue line shows the effective Fed funds rate. The orange line depicts the average interest rate on a $10,000 one-year CD. The Fed funds target rate has risen, but the rate of the average yield of the certificate of deposit has not risen.  It is at 25 bp, an increase of five basis points over the past four years.  Goldstein documents other evidence that...

Europe is as we all are. Ben Bernanke wrote a few years ago that his tenure at the Fed must have been a success in his view because the US economy didn’t perform as badly as Europe’s. As usual, this technically true comparison is for any meaningful purpose irrelevant. For one, the European economy underperformed before 2008, too. Second, after 2008, really August 9, 2007, there isn’t nearly as much difference as...

The Crypto-Bubble – A Speculator’s Dream in Cyberspace When writing an article about the recent move in bitcoin, one should probably not begin by preparing the chart images. Chances are one will have to do it all over again. It is a bit like ordering a cup of coffee in Weimar Germany in early November 1923. One had to pay for it right away, as a cup costing one wheelbarrow of Reichsmark may well end up costing two...

Thomas Jordan, Chairman of the Governing Board of the Swiss National Bank News conference of the Swiss National Bank, Berne, 16.06.2016 Thomas Jordan - Click to enlarge Introductory remarks by Thomas Jordan Ladies and gentlemen It is a pleasure for me to welcome you to the Swiss National Bank’s news conference. I will begin by explaining our monetary policy decision and our assessment of the economic situation. I will...

Swiss National Bank leaves expansionary monetary policy unchanged The Swiss National Bank (SNB) is maintaining its expansionary monetary policy, with the aim of stabilising price developments and supporting economic activity. Interest on sight deposits at the SNB is to remain at –0.75% and the target range for the three-month Libor is unchanged at between –1.25% and –0.25%. The SNB will remain active in the foreign...

Fritz Zurbrügg, Vice Chairman of the Governing Board of the Swiss National Bank News conference of the Swiss National Bank, Berne, 15.06.2017 Fritz Zurbrugg - Click to enlarge Introductory remarks by Fritz Zurbrügg In my remarks today, I will present the key findings from this year’s Financial Stability Report, published by the Swiss National Bank this morning. In the first part of my speech, I will look at the...

Andréa M. Maechler, Member of the Governing Board of the Swiss National Bank News conference of the Swiss National Bank, Berne, 15.06.2017 Complete text: PDF (478 KB) I will begin by reviewing the situation on the international financial markets. I will then address some developments on the Swiss money and foreign exchange markets – specifically the establishment of SARON as the leading reference rate for interest rate...

Swiss Franc The Euro has fallen by 0.21% to 1.0869 CHF. EUR/CHF - Euro Swiss Franc, June 15(see more posts on EUR/CHF, ) - Click to enlarge FX Rates The US dollar gains scored yesterday in response to what appeared to be a more hawkish FOMC than expected have been extended today.  The euro and the Swiss franc have recorded new lows for the month. In some ways, a do-nothing MPC meeting may be overshadowed by the...

The Producer Price Index (PPI) or officially named “Producer and Import Price Index” describes the changes in prices for producers and importers. For us it is interesting because it is used in the formula for the Real Effective Exchange Rate. When producers and importers profit on lower price changes when compared to other countries, then the Swiss Franc reduces its overvaluation. The Swiss PPI values of -6% in 2015...