SNB to Raise Rates in 2019
SNB to Raise Rates in 2019

SNB to Raise Rates in 2019

SNB to Raise Rates in 2019

The Swiss National Bank will continue tracking its eurozone counterpart as it inches along the path toward tighter monetary policy, despite buoyant economic growth.
After the European Central Bank said it would keep interest rates at rock bottom through next summer and the SNB used its latest policy decision to highlight risks from protectionism to European politics, economists pushed back their Swiss rate expectations.
According to Bloomberg’s monthly survey, they now see a 25 basis-point increase in the deposit rate in the fourth quarter of 2019, a quarter later than previously predicted. The rate is currently at minus 0.75%, while the SNB also has a pledge to intervene in currency markets if needed.
The franc’s depreciation to the key 1.20 per euro mark earlier this year had prompted some speculation that SNB President Thomas Jordan could preempt the ECB. But that changed when the currency reversed course, strengthening amid political turmoil in Italy and the prospect of a US-China trade war. Interest-rate futures also now only fully price in a Swiss rate rise in December of next year.
Economists were a bit more upbeat on the Swiss economy this month, and expect growth to touch 2.2% this year before cooling to 1.8% in 2019. Inflation is set to hover around 1% into 2020.
With the economy growing and inflationary pressures slowly building, “the SNB can very gradually start thinking about moving way from its extreme policies,” said Christian Schulz, director of European research at Citigroup. However, “given the risks to the exchange rate, in particular the euro-Swiss exchange rate, we think that the SNB will watch very closely what the ECB is doing.”

Short URL : https://goo.gl/3ZFSt6
  1. https://goo.gl/g7tYWm
  • https://goo.gl/7yj5iG
  • https://goo.gl/ZU4cj7
  • https://goo.gl/TUeAf1
  • https://goo.gl/R9hLww

You can also read ...

China Warned of Ballooning SOEs
Former chief of the World Bank Robert Zoellick cautioned China...
Business confidence fell to its lowest level since August 2013 and around 7% of companies expected a contraction.
According to data from the International Monetary Fund in...
Shrinking unemployment in the US, Japan and the eurozone finally forces companies  to lift wages to retain and attract staff.
Workers in the world's richest countries are getting their...
New Zealand Q2 GDP Growth Picking Up
New Zealand’s economic growth is expected to have accelerated...
Saudi Sovereign Fund Secures $11 Billion Loan
Saudi Arabia's sovereign wealth fund said Monday it had...
Lira Eases Against Dollar
Turkey’s lira weakened against the dollar on Monday as...
By 2025 more than half of all current workplace tasks  will be performed by machines.
Robots will handle 52% of current work tasks by 2025, almost...
Myanmar Businesses Want Lower Taxes
Myanmar businesses are urging the government to lower the...

Add new comment

Read our comment policy before posting your viewpoints