requires The Swiss national Bank (SNB) of banks unchanged at 0.75 per cent negative interest rates on sight deposits over a certain amount.
the target range for the three-month Libor, the guardian of the currency, between between -1.25 percent and -0.25 percent, as the SNB announced on Thursday. In addition, the national Bank wants to intervene continues to be in demand in the foreign exchange market.
The SNB corrected in addition to its inflation forecast downward, mainly due to the fallen oil prices. For 2019, the monetary authorities expect an Inflation rate of 0.5 per cent, three months ago, the forecast lauetete 0.8 percent. And the inflation forecast for 2020 was reduced to 1.0 from 1.2 percent. For the soon to be completed current year, the SNB expects an inflation rate of 0.9 percent.
in Addition, the SNB lowers its forecast for economic growth in the current year to “around 2.5 percent” before “of 2.5 to 3.0 per cent”. She is in good company: Previously, the various forecasters had reduced because of the weaker economy in the third quarter of their predictions.
Swiss franc is still high
a rating As a reason for the retention of the monetary policy stance of the SNB in the Communiqué of Thursday announced the Swiss franc. These have been weighted since the last assessment in September trade easily upgraded, but that would be mainly a consequence of the stronger US dollar. Against the Euro have changed the value of the Swiss franc. The Swiss franc remains in the judgment of the SNB’s overall high rating. In addition, the location will show on the Forex market remain fragile. The current monetary policy is therefore still necessary.
As usual, the SNB is also reflected to the Mortgage and real estate market. The imbalances remained. Especially in the Segment of residential investment property, the Bank locates due to the strong price increase in the past few years, the risk of a correction.
Barely movement in the exchange rate after the interest rate decision
experts had expected that the SNB is maintaining its monetary policy course. The reason for this is to look at the European Central Bank (ECB). This will make increases in accordance with the majority of experts at the earliest after the summer of 2019 first interest. The SNB must, however, ensure that Euro-denominated investments yield more interest, wants to avoid an appreciation of the Swiss franc against the Euro. Therefore, you will not increase the interest rates well before the ECB.
After the interest rate decision of Thursday, the exchange rate of the Swiss franc moved to the Euro and the Dollar. (nag/sda)
Created: 13.12.2018, 10:14 PM
