by Investec Switzerland. Swiss National Bank President Thomas Jordan doesn’t expect cash stockpiling even with negative interest rates and a new series of smaller banknotes. Source: Swiss National Bank “The size has no impact on the cash hoarding,” he said in a Bloomberg Television on Wednesday in Bern after the central bank unveiled a new banknotes that are smaller than those presently in use. “But we don’t really observe a big hoarding in Switzerland. We have a little bit higher growth rates for cash, but not really a hoarding problem.” Negative interest rates and a pledge to wage currency market interventions have been the cornerstone of the SNB’s monetary policy for the past 15 months, designed to combat an overvalued currency. The injection of additional monetary stimulus within the euro area has repeatedly prompted speculation the SNB could further reduce its deposit rate, already at a record low of minus 0.75 percent, to take pressure off the franc. By Catherine Bosley (Bloomberg) Facebook and Twitter.
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Investec considers the following as important: Business & Economy, Editor's Choice, Negative Swiss interest rates, New Swiss bank notes, Swiss cash hoarding
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Swiss National Bank President Thomas Jordan doesn’t expect cash stockpiling even with negative interest rates and a new series of smaller banknotes.
Source: Swiss National Bank
“The size has no impact on the cash hoarding,” he said in a Bloomberg Television on Wednesday in Bern after the central bank unveiled a new banknotes that are smaller than those presently in use. “But we don’t really observe a big hoarding in Switzerland. We have a little bit higher growth rates for cash, but not really a hoarding problem.”
Negative interest rates and a pledge to wage currency market interventions have been the cornerstone of the SNB’s monetary policy for the past 15 months, designed to combat an overvalued currency. The injection of additional monetary stimulus within the euro area has repeatedly prompted speculation the SNB could further reduce its deposit rate, already at a record low of minus 0.75 percent, to take pressure off the franc.
By Catherine Bosley (Bloomberg)