Switzerland

Global economic outlook

The global economy has a strong impact on the Swiss economic outlook. Consequently, the SNB bases its inflation forecast on the most likely assumptions with respect to future developments in the global economy. Its current assumptions are based on growth rates that are slightly higher than those foreseen in June. Positive growth rates are expected before the end of the year, both in the US and in Europe. However, there are still major risks to global economic developments.

Swiss economic outlook
The economic situation in Switzerland remains difficult. GDP contracted again in the second quarter. The rate of capacity utilization continued to fall, particularly in manufacturing. Unemployment and short-time working shot up, while consumer confidence persisted at a low level.

However, goods exports are likely to pick up in the next few months as the global economy recovers. The upturn in activity will affect the various export sectors in different ways. The demand for capital goods and consumer durables, in particular, is likely to remain modest. In the area of domestic demand, the combined softness in both private consumption and investment should result in a sluggish GDP.

For 2009 as a whole, the SNB now expects GDP to fall less substantially (–1.5% to –2%, compared with –2.5% to –3% in June). There are two reasons for this revision: global economic growth has resumed more quickly than expected and, as early as the second quarter, the fall in Swiss GDP was less deep than anticipated. Nevertheless, the SNB still holds the view that the return to full capacity utilization will be slower and more uncertain overall than is usually the case at the end of a recession.

Swiss Monetary Policy Assessment of 17 Sept, 2009

Switzerland

| Print | E-mail

Last Updated on Thursday, 17 September 2009 17:45

Swiss National Bank maintains its expansionary monetary policy

The Swiss National Bank is maintaining the expansionary monetary policy which it initiated last March. Despite the recent increase in the number of encouraging economic signs, uncertainty as to future developments remains considerable. In these circumstances, the SNB is opting for caution and retaining its monetary policy unchanged.
Consequently, the SNB is holding the Libor target range at 0–0.75%. It is still aiming to keep the Libor within the lower end of this range, i.e. at approximately 0.25%. It will continue to provide the economy with a generous supply of liquidity and, if necessary, to purchase Swiss franc bonds with a view to reducing risk premia on long-term debt instruments issued by private sector borrowers. In addition, it will continue to act decisively to prevent any appreciation of the Swiss franc against the euro.

Monetary Policy Focus

Currency Converter

Amount:

From:

To:

Central Banks Interest Rates

US	0.25%
UK	0.5%
EMU / EURO	1%
Japan	0.1%
Switzerland	0.25%
Canada	0.25%
Australia	3%
New Zealand	2.5%
Sweden	0.25%

Register | Login (Gmail Account Accepted)

Switzerland

Global Economic Outlook - Swiss Monetary Policy...

Swiss Monetary Policy Assessment of 17 Sept, 2009

Monetary Policy Focus

Currency Converter

Central Banks Interest Rates

MyForexTime Twitter Updates

Advertisment

Gold Future and Spot

Central Banks

Brokers & FDMs

Forex Education