the President of The Swiss national Bank (SNB), Thomas, Jordan , emphasized in his annual Meeting on the economic situation and monetary policy with the Federal Council of the importance of negative interest rates.
The Swiss economy continued in the second quarter of moderate growth, but also in this country have deteriorated, the prospects in the Federal Council announced that based on the conversation with Barbara Steiner, the President of the Bank Council of the SNB, Thomas Jordan, the President of the SNB governing Board. “The risk of a deterioration in the international situation continues to exist”, it says in the message. Inflation had declined, the global low interest rate environment have solidified and the situation on the currency market remain uncertain.
criticism of negative interest rates
in view of the continuing high valuation of the Swiss franc, Jordan notes that in the area of monetary policy, with negative interest rates, and intervention readiness continues to be essential. Further, he sees continuing imbalances in the real estate and mortgage market, in particular in the Segment of residential investment property.
The negative interest rates were met in Switzerland recently to criticism – because they are loads on the pensions and lead to an Overheating in the real estate market could. The next regular interest rate meeting, the SNB will take place in mid-December. (step/reuters)
Created: 13.11.2019, 13:18 PM
