SNB Is Edging Toward Zero Rate in Tussle With Franc Speculators
1 week, 5 days ago

SNB Is Edging Toward Zero Rate in Tussle With Franc Speculators

Live Mint  

-- Switzerland’s two-year stint of positive interest rates is about to inch closer to a potential end with the central bank’s likely move to cut borrowing costs this week. Either way, the decision will use up precious ammunition for a central bank whose rate is already one of the world’s lowest, showcasing the quandary for Swiss policymakers trying to prevent an undershoot of inflation that, at 0.7%, is already nearing the floor of their target range. “There’s weak growth in Europe and possibly a trade war coming,” said Nadia Gharbi, an economist at Banque Pictet & Cie SA in Geneva. “Market pricing puts some pressure on the SNB to do more.” According to Botteron at UBS, currency traders “certainly” realize that the SNB has less easing space than other central banks.

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History of this topic

Swiss central bank makes a surprise cut to its key interest rate as others hold steady
9 months ago

Swiss central bank makes a surprise cut to its key interest rate as others hold steady

Associated Press  

GENEVA — The Swiss National Bank said Thursday that it is trimming its key interest rate, a surprise move that makes Switzerland the first major financial center to announce a cut in recent months. Jordan said the Swiss central bank also was taking into account the appreciation of the franc in real terms over the past year and noted how …

Fed’s tough challenge: Confront inflation and bank jitters
1 year, 9 months ago

Fed’s tough challenge: Confront inflation and bank jitters

Associated Press  

WASHINGTON — Still grappling with persistently high inflation, the Federal Reserve faces an entirely new — and in some ways conflicting — challenge as it meets to consider interest rates this week: How to restore calm to a nervous banking system. Last week, the European Central Bank imposed a half-point rate hike to try to reduce an 8.5% inflation rate …

Swiss central bank enacts biggest-ever hike to key rate
2 years, 3 months ago

Swiss central bank enacts biggest-ever hike to key rate

Associated Press  

GENEVA — Switzerland’s central bank carried out the biggest hike ever to its key interest rate Thursday, following the U.S. Federal Reserve and other central banks around the world in aggressive moves to clamp down on inflation. The Swiss rate increased from minus 0.25% to 0.5%, ending several years of negative interest rates — a testament to the stable growth, …

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