“In the current Situation, is the negative interest rate as well as our willingness to intervene when necessary in the foreign exchange market, … is essential,” said SNB President, Thomas Jordan, according to the speech text to the General Assembly on Friday in Bern.
the Only way the SNB in Switzerland could get the interest rate and exchange rate conditions, which are necessary to fulfill its mandate is necessary to ensure price stability while taking due account of economic developments. “We stopped the negative interest for the fulfilment of our mandate is not absolutely necessary, we would do without him,” said Jordan.
“Important contribution to the economy”
For Jordan, out of the taksim escort question” that the negative interest has done in the past, an important contribution to lead the Swiss economy, “the well through a difficult time” is “. And he’s carrying even today, “very much” that the Swiss economy will develop in spite of the many international uncertainty factors. In front of the shareholders, Jordan then put the (rhetorical) question of whether it would go to the citizens in Switzerland, without the negative interest rate is better. Not surprisingly he comes to the conclusion that this is not so.
“A cancellation of the negative interest rate would reset to the Swiss economy sharply”, said the SNB’s President. The short-term interest rates in Switzerland would then be higher than in other countries, which would increase the attractiveness of investments in Swiss francs. Survey
What do you think of the negative interest rates the SNB?
you need Swiss francs, and exports remain stable.
you are a Nuisance. Savers and PK’s are losing money.
Vote
you need Swiss francs, and exports remain stable.
43.3%
you are a Nuisance. Savers and PK’s are losing money.
56.7%
1069 votes
you need Swiss francs, and exports remain stable.
43.3%
you are a Nuisance. Savers and PK’s are losing money.
56.7%
1069 votes
This would add value to the Swiss franc, what are the economic affect dynamics in Switzerland, the unemployment increase and inflation would push in the negative, and concludes Jordan.
would Hardly improve impact for pension funds
the bottom line, according to Jordan, the position of savers, pension funds, life insurance companies and banks are “hardly essential”. So would be tarnished because of the strong economic slowdown, the prospects of profit of the company.
in Addition, would not change the capital-market interest rates due to the deterioration in the economic Outlook, “little”, even if the short-term interest rates in Switzerland would be negative.
the same is true, according to Jordan also for the real estate market. Although a lifting of the negative interest rate could dampen the momentum a little here. However, because of the low interest rate level, little would change, would be the effect is limited. All in all, the highest Swiss currency guardians comes to the conclusion: “The abolition of the negative interest in the current Situation would not be in the overall interest of our country.” (aru/sda)
Created: 26.04.2019, 10:28 PM
