Swiss National Bank

Swiss National Bank

December 15, 2016

The Swiss National Bank reported result of its quarterly policy review today, which ended without a change in the interest rate of -0.75% on overnight sight deposits or the pledge to intervene as needed to counter what central bank officials to be a still significantly overvalued franc. Since January 2015, intervention has been done on […] More

Broad Financial Market Adjustments Intensify in Wake of FOMC Meeting

December 15, 2016

The dollar gained overnight by another 2.0% against the Australian dollar, 1.5% versus the euro, 1.6% vis-a-vis the kiwi, 1.2% relative to the yen, 0.9% against sterling, and 0.6% versus the yuan. Key levels are being approached such as parity with the euro, 120 yen, and 7 renminbi. Throughout the 8-year Obama stewardship, Republicans fought […] More

Quarterly Swiss Monetary Policy Review

September 15, 2016

Officials at the Swiss National Bank left their policy interest rate unchanged and retained a supportive readiness to intervene as needed to counter excessive strength in the franc. The sight deposit rate stays at -0.75%, and the target range for three-month Swiss Libor is centered on that level and a percentage point wide. The exchange […] More

Unchanged Swiss Monetary Policy but Higher Near-Term Inflation after Quarterly Policy Review

June 16, 2016

The Swiss sight deposit rate target was left at -0.75% and the 3-month Libor target corridor was kept at -1.25% to -0.25%.  Swiss National Bank authorities also said they”will remain active in the foreign exchange market, as necessary.”  Explaining these decisions in a released statement, officials go on to say The negative interest rate and the […] More

Swiss National Bank

March 17, 2016

The latest quarterly review of Swiss monetary policy revises projected growth and inflation lower in both 2016 and 2017 but left policy settings unchanged.  Fourteen months have passed since a 1.2 franc per euro asymmetric barrier to franc appreciation was discontinued, but officials promise to remain “active” in the foreign exchange market to counter what it considers […] More

Swiss National Bank

December 10, 2015

Swiss monetary policy remains unchanged after the final quarterly review of 2015.  The year began with an unscheduled mid-January abandonment of a 1.20 franc per euro ceiling rate and rate reductions to a 3-month Libor range of minus 1.25% to minus 0.25% and a sight deposit rate of –0.75%.  SNB President released a statement today […] More

Quarterly Review of Swiss Central Bank Policy Leaves Stance Unchanged

September 17, 2015

The Swiss deflation problem was aggravated by renewed weakness in world oil prices.  Consumer prices fell 1.4% between August 2014 and August 2015, and economic growth in the first half of 2015 was virtually flat, with a a drop in the first quarter reversed by slightly positive growth in the spring.  With interest rates near […] More

Narrowly Mixed Dollar Ahead of FOMC Decision

September 17, 2015

There’s been an 8.3 earthquake off the coast of Chile and an ensuing tsunami.  In last night’s Republican debate, Trump’s rivals escalated their attacks on the front-runner. This FOMC day could produce the first federal funds rate hike since a 25-basis point increase in June 2006, so there’s excitement in the air.  A Janet Yellen […] More

Swiss National Bank

June 18, 2015

As a perennial safe haven, the Swiss economy continues to grapple with the fallout of an overvalued currency related to global uncertainty including the five-year-long Greek debt crisis.  Swiss monetary officials have resorted to negative interest rates and for several years imposed a cap with intervention on the Swiss franc’s euro cross rate.  When that […] More

Fewer Fireworks from the Swiss National Bank as Interest Rate Target Not Changed

March 19, 2015

No central bank created a greater market surprise in the first quarter of 2015 than the Swiss National Bank, whose franc ceiling of 1.2000 per euro was abruptly discontinued on January 15, which hadn’t even been a scheduled policy review.  These are held quarterly.  Monetary policy had been subordinated to an exchange rate policy in […] More

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