SNB & CHF

Thomas Jordan, Chairman of the Governing Board of the Swiss National Bank News conference of the Swiss National Bank, Berne, 14.12.2017 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...

Andréa M. Maechler, Member of the Governing Board of the Swiss National Bank News conference of the Swiss National Bank, Berne, 14.12.2017 Complete text: PDF (478 KB) I will begin my remarks with a review of the situation on the financial markets, before going on to discuss the progress made in reference interest rate reform. Situation on the financial markets Let me start with developments on the financial markets....

Fritz Zurbrügg, Vice Chairman of the Governing Board of the Swiss National Bank News conference of the Swiss National Bank, Berne, 14.12.2017 Fritz Zurbrugg - Click to enlarge Introductory remarks by Fritz Zurbrügg In my remarks today, I would like to address some of the developments currently taking place in the field of financial stability. I shall look at the big banks first before turning to the domestically...

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...

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...

Swiss growth was disappointing at the end of 2016 and in the first half of 2017. Consequently, GDP growth this year is likely to be just 1.0%, its lowest level since 2012. However, a wide set of statistics are already painting a considerably more positive picture of strengthening growth as we approach the end of 2017. Of particular note is the increasing contribution of manufacturing to real GDP growth. Switzerland’s...

Swiss Franc The Euro has risen by 0.18% to 1.1673 CHF. EUR/CHF and USD/CHF, December 14(see more posts on EUR/CHF, USD/CHF, ) Source: markets.ft.com - Click to enlarge FX Rates US interest rates have recovered the drop seen after the FOMC yesterday, but the dollar at best has been able to consolidate its losses and at worst, seen its losses extended. The Fed boosted its growth forecasts and lower unemployment...

Charles Hugh Smith talks about the disparity in the government’s CPI index that states the cost of living is less than 2% per year when reality is different.

We have upgraded our growth projection for this year and next. There are upside risks to our forecast that the ECB will start hiking rates in Q3 2019. Taking account of stronger growth momentum, the carryover effect and upward revisions to past data, we have upgraded our euro area annual GDP growth forecasts to 2.3% both in 2017 and 2018. Our forecasts remain consistent with a very gradual slowdown in the quarterly...