Swiss National Bank
Swiss National Bank Keeps -0.75% Interest Rate Target
June 18, 2020
The scheduled quarterly monetary policy review at the Swiss National Bank ended with officials leaving their policy rate unchanged at negative 0.75% and doubling down on the need for forceful currency market intervention to counter safe-haven demand and limit the franc’s appreciation. GDP is projected to drop 6% this year in a released statement, and […] More
More Concern than Hope in Thursday’s Marketplace
June 18, 2020
It’s been a busy day for central bank watchers, as monetary policy was reviewed in the U.K., Norway, Switzerland, Brazil, Taiwan, and Indonesia. Released statements and some new data adhere to the baseline view that economic activity contracted even more sharply in the second quarter than the first but that the rate of slide began […] More
Swiss National Bank to Be Vigilant with Intervention to Contain Franc Strength
March 19, 2020
The Swiss National Bank‘s sight deposit rate of negative 0.75% since January 2015 was retained at that central bank’s quarterly policy review, and officials characterized the franc as even more overvalued than before, which will necessitate more intense intervention in the FX market. Extra steps are being taken to ensure ample liquidity. Officials do not […] More
Central Banks, Economic Data Surprises, and British Voters in the News This Thursday
December 12, 2019
Polls in Britain’s parliamentary election today will close at 22:00 GMT 17:00 EST. The fate of Brexit is at stake. U.S. producer prices stayed unchanged in November, defying expectations of an increase and leaving the 12-month increase at 1.1%. An even bigger surprise was a leap in new jobless insurance claims last week to 252k, […] More
Eight More Central Bank Meetings, a U.S. Current Account Report, and Downgraded Global Growth
September 19, 2019
Dollar movement overnight was mixed, with gains against the Australian dollar, kiwi, sterling, and yuan but losses relative to the yen, Swiss franc, euro, loonie and peso. The 10-year U.S. Treasury and Japanese JGB yields fell three basis points. Their German and British counterparts are respective a basis point higher and a basis point lower. […] More
Swiss Quarterly Monetary Policy Review
June 14, 2019
The Swiss National Bank’s quarterly monetary policy review yesterday left the expansionary stance unchanged. Viewing their currency to be overly pricey, officials remain prepared to intervene against excessive appreciation on a discretionary basis as appropriate. The 3-month sight deposit target remains negative 0.75% as defined by a -1.75 to -0.25% 3-month LIBOR corridor. However, officials […] More
Swiss National Bank Keeps Policy the Same but Lowers Projected CPI Inflation Path
March 21, 2019
At the latest quarterly review of Swiss monetary policy, SNB officials kept policy unchanged. Since January 2015, when the automatic cap on Swiss franc was lifted and the interest rate target was cut by 50 basis points, the 3-month Libor rate target band has been an all-negative range of minus 1.25% to minus 0.25%, the […] More
Theme of the Day: Slowing Global Growth
March 21, 2019
Since the Federal Reserve’s policy decision and press conference yesterday, there’s been a parade of other central bank policy meetings. Although only Norway changed its policy rate — a hike no less — the running theme in the many central bank statements is that the slowdown in global demand late last year is continuing and […] More
Many Central Bank Meetings and a Stunning Deceleration of U.S. Import Price Inflation
December 13, 2018
The dollar shows no net overnight change against the Swiss franc, Chinese yuan, New Zealand dollar, or Canadian dollar. The greenback rose 0.8% versus the Mexican peso, 0.4% relative to the yen, and 0.1% versus the euro while dipping 0.1% vis-a-vis the Australian dollar and sterling. Asian equities rallied, but share prices in Europe and […] More
Softer Dollar
September 20, 2018
The dollar fell overnight by 0.8% against the kiwi, 0.6% relative to sterling, 0.4% vis-a-vis the euro and 0.2% versus the currencies of America’s NAFTA partners. The yen and yuan are unchanged. China partly matched Trump’s latest round of tariff hikes. While the 10-year German bund and British gilt yields settled back a basis point […] More
