Swiss National Bank

Swiss National Bank: Review Identifies a Considerable Deterioration of the Economic Outlook

September 18, 2014

The quarterly monetary policy review Revised projected 2014 growth to “slightly less than 1.5% from 2.0%, noting negative annualized growth of minus 0.2% last quarter. Opined that global recovery in coming quarters will be weaker than forecast previously and remains vulnerable to setbacks. Called the Swiss franc “still high” but did not change the 1.2000 […] More

Unchanged Swiss Monetary Policy after Quarterly Review

June 19, 2014

Almost three years have passed since the current policy stance was established to ward off deflation.  On August 3, 2011, the Swiss National Bank sliced the target 3-month Libor interest rate range and point to 0.0-0.25% and “around zero,” respectively.  A month later, officials introduced an asymmetric exchange rate objective, capping Swiss franc strength against […] More

Swiss National Bank Quarterly Monetary Policy Review Leaves Settings in Place

March 20, 2014

Swiss monetary policy settings were left unchanged, and the released statement contained many elements common to recent quarterly reviews other than the retention of cap of 1.2000 francs per dollar to be defended by unlimited intervention if necessary, a 3-month Libor interest rate target range of 0.0-0.25%, and a point interest rate target pinned at […] More

Quarterly Review of Swiss Monetary Policy

December 12, 2013

Officials at the Swiss National Bank Decided to retain a zero point and 0.0-0.25% range target on the three-month Swiss libor rate. Retained a 1.2000 franc per euro cap on the exchange rate to be enforced by unlimited intervention and whatever other means prove necessary but noted that intervention hasn’t been needed since September 2012. […] More

The Morning After Delivers More Central Bank News

September 19, 2013

In the wake of the Federal Reserve’s decision not to cut quantitative stimulus just yet, the euro soared to a 7-month high of $1.3569, gold has climbed 4.4% to $1365.5 per ounce, other commodities like WTI crude oil (+0.6% to $108.76) are also higher, share prices are higher in Europe and Asia (especially where selling […] More

Swiss National Bank’s Quarterly Monetary Policy Review

June 20, 2013

It’s been almost two years since the 3-month Libor target point and range were cut in August 2011 to zero and 0.0-0.25% and authorities imposed a cap on franc strength versus the euro of 1.2000 on September 6, 2011.  Today’s quarterly policy review reaffirmed those guidelines and made minuscule changes in its economic outlook.  Real […] More

Swiss National Bank Retains Anti-Deflationary Policy Settings and Cuts Projected Inflation

March 14, 2013

The current ultra-accommodative Swiss monetary policy stance was launched in the summer of 2011.  The overnight target for 3-month Libor had previously been cut from a range of 2.25-3.25% between September 2007 and early October 2008 to a range of 0.0-0.75% by March 2009.  Officials had thereafter engaged unsuccessfully in intervention to cap franc strength […] More

No Policy Changes after Swiss National Bank Quarterly Review

December 13, 2012

Swiss monetary officials didn’t change either their interest rate target range nor the maximum franc/euro cross rate level that they stand ready to defend with “utmost determination,” that is unlimited intervention.  Both the interest rate and exchange rate settings are intended to counter deflation and restore eventual low, but positive, inflation.  Aggressive interest rate reductions […] More

Focus on Central Banks, Japanese Election and Euro Council Summit

December 13, 2012

Analysts are calling yesterday’s FOMC adoption of data-driven guidelines and additional Treasury security purchases a landmark step. There were three other central bank meetings overnight. The Bank of Korea left its 7-day repo rate at 2.75%, matching some but not all expectations. The Filipino key overnight borrowing rate was kept at 3.5% as anticipated. The […] More

Swiss National Bank Frustrated the Franc Isn’t Weaker

September 13, 2012

In August 2011, Swiss monetary authorities cut the 3-month Libor target to zero to 0.25% with a point objective of 0.0%.  This imposition of ZIRP (zero interest rate policy) was followed one month later by a euro floor of CHF 1.2000 that the central bank has enforced with currency intervention and other steps.  These actions […] More