Bancos centrales

Germany Unemployment Change below expectations (15K) in August: Actual (10K)..

• The coronavirus pandemic is continuing to have a strong adverse effect on the economy.

• Against this difficult backdrop, the SNB is maintaining its expansionary monetary policy with a view to stabilising economic activity and price developments.

• In light of the highly valued Swiss franc, the SNB remains willing to intervene more strongly in the foreign exchange market.

• Furthermore, it is supplying generous amounts of liquidity to the banking system via the SNB COVID-19 refinancing facility. 

• The SNB’s expansionary monetary policy provides favourable financing conditions, counters upward pressure on the Swiss franc, and contributes to an appropriate supply of credit and liquidity to the economy.

• In the current situation, the inflation outlook remains subject to high uncertainty. 

• The new conditional inflation forecast through to the end of 2021 is slightly lower than in September. This is primarily due to the renewed deterioration in the economic situation as a result of the second wave of the pandemic. 

• The forecast for 2020 is negative (−0.7%). The inflation rate is likely to be higher again next year (0.0%) and slightly positive in 2022 (0.2%). The conditional inflation forecast is based on the assumption that the SNB policy rate remains at −0.75% over the entire forecast horizon.

• Momentum is likely to be weak in Q4 2020 and Q1 2021.

• The SNB expects that GDP will shrink by around 3% this year. 

• SNB expects GDP growth of 2.5% to 3% for 2021. 

• We are not a currency manipulator

• We do not intervene to take advantage of other currencies

• Central banks around the world are in close contact

• But monetary policy alone cannot solve this crisis

• Monetary policy is complementary and can support fiscal measures

• Doesn't see a new minimum exchange rate at the moment

• Negative rates have side effects, SNB trying to minimise those side effects.

• That gives us the freedom to maintain negative rates for longer and also to cut the rate if necessary.

• SNB conducts independent monetary policy, does not follow the ECB.

• Balance of risks is tilted to the downside.

• Needs to take international environment into account.

• SNB could still cut rates if needed.

• We still have a highly valued Swiss franc, important to keep expansive policy.

• SNB can intervene as necessary.

• Never intend to weaken the franc for any advantage.

• Remains prepared to intervene in markets if needed

• Risks to the global economy remain tilted to the downside

• Franc remains highly valued; FX market remains fragile

• Willing to intervene in FX market as necessary, while taking overall currency situation into consideration

• Negative rates and willingness to intervene should counteract attractiveness of the franc and ease upward pressure on the currency

• 2019 GDP forecast seen at around 1.0% (previously 0.5% to 1.0%)

• 2020 GDP forecast seen between 1.5% to 2.0%

• 2019 inflation forecast seen at 0.4% (unchanged)

• 2020 inflation forecast seen at 0.1% (previously 0.2%)

• 2021 inflation forecast seen at 0.5% (previously 0.6%)

• Swiss economy remains dynamic

• inflation pressures remain very weak

• expansive monetary policy remains necessary

• monetary policy remains based on negative interest rates and readiness to intervene in the currency markets if needed

• SNB willing to intervene if necessary

The Swiss National Bank (SNB) Chairman Thomas Jordan said in a press conference on Thursday that the central bank would intervene in the foreign exchange market if needed. He pointed out that the franc remained significantly overvalued.

Jordan noted that the Swiss economy was expanding moderately this year.

The SNB chairman also said that the SNB would monitor the results of the referendum on Britain's membership in the European Union, and it would act if needed.

"Next week's UK referendum on whether to remain in the EU may cause uncertainty and turbulence to increase. We will be monitoring the situation closely and will take measures if required," Jordan noted.

The Swiss National Bank (SNB) released its interest rate decision on Thursday. The central bank kept the rates on sight deposits at minus 0.75% and said that the bank will remain active in the forex market if needed.

The SNB noted that the Swiss franc was still significantly overvalued.

Inflation was upgraded to -0.4% in 2016 from the previous forecast of -0.8%. The central bank expects inflation to be 0.3% in 2017, up from the previous forecast of 0.1%.

The upward revision was driven by a recent rise in oil prices.

The central bank noted that global economy was expected to expand moderately over the coming quarters, adding the referendum on Britain's membership in the European Union was a risk to the outlook.

The SNB expects the Swiss economy to grow between 1% and 1.5%, unchanged from its previous estimate.

The Swiss National Bank's (SNB) foreign exchange reserves increased to 587.566 billion Swiss francs in April from 576.479 billion francs in March. The data could mean that the central bank the central bank may have intervened in the foreign exchange market.

The SNB declined to comment.

The Swiss National Bank (SNB) President Thomas Jordan said in a speech on Monday that the Swiss franc remained significantly overvalued. He also said that the central bank's monetary policy helped "to stabilise price developments and support economic activity".

"The SNB will continue to make the most of the latitude afforded by monetary sovereignty to respond pragmatically to the challenges ahead," he noted.

"However, monetary policy cannot remedy all economic ills, especially those of a structural nature," Jordan added.

The Swiss National Bank (SNB) Chairman Thomas Jordan said in a speech on Friday that inflation in Switzerland remained negative, driven by a stronger Swiss franc and a decline in oil prices. He added that inflation was expected to be positive in 2017.

The Swiss National Bank (SNB) released its interest rate decision on Thursday. The central bank kept the rates on sight deposits at minus 0.75% and said that the bank will remain active in the forex market if needed.

The SNB noted that the Swiss franc was still significantly overvalued.

Inflation was downgraded to -0.8% in 2016 from the previous forecast of -0.5%. The central bank expects inflation to be 0.1% in 2017, down from the previous forecast of 0.3%.

The downward revision was driven by a further decline in oil prices.

The central bank noted that global economic outlook deteriorated slightly in recent months.

According to the central bank, the central bank's assessment of the global economic outlook was less favourable than in December.

The SNB said that the Swiss economy to expanded "just under" 1% in 2015. The central bank expect the Swiss economy to grow between 1% and 1.5%, down from its previous estimate of 1.5%.

The Swiss National Bank (SNB) Chairman Thomas Jordan said in Frankfurt on Tuesday that the options of the monetary policy were not unlimited.

"Despite the expanded set of instruments available, the extent of the monetary policy can achieve is not unlimited," he said.

"The effects of monetary policy measures can wane with duration and dosage, especially when the solution to structural problems lies in adjustments to economic policy," Jordan noted, adding that "central banks must continually weigh the short-term benefits against long-term costs".

He pointed out that the Swiss franc was still overvalued.