Survey finds Swiss Bank would stay loyal to ultra-loose policy

Author: Agencies

The Swiss National Bank will hold firm to its expansive stance and negative 0.75% interest rate when it meets to review monetary policy on Thursday, a Reuters poll showed. All 31 economists polled by Reuters expected Chairman Thomas Jordan to stick with the ultra-loose monetary policy the central bank has followed for the five years since scrapping its peg to the euro.

The next change was not expected for years as the SNB attempts to prevent more strengthening in the haven Swiss franc which could further hurt the Swiss economy, already in a recession caused by the COVID-19 outbreak.

Economists in the Sept. 16-21 poll were also unanimous the SNB would keep the interest rate on sight deposits locked down at negative 0.75% and continue currency interventions to block the franc’s rise.

“I expect the SNB to continue with its two pillar approach for the foreseeable future,” said Gero Jung, chief economist at Mirabaud.

“Since March we have seen a significant strengthening of the euro against the dollar, but the euro-Swiss franc exchange rate has not changed that much, which means it is still a concern for the SNB.”

Even as the central bank’s balance sheet expands to nearly 1 trillion Swiss francs ($1.1 trillion), many of the economists expected it to keep buying foreign currencies at the current rate of 1 to 2 billion Swiss francs per week. They said the SNB could accelerate interventions if pressure on the franc increases.

Share
Leave a Comment

Recent Posts

  • Top Stories

‘We are well aware of our constitutional limits’: Gen Asim Munir

During his address at the passing out parade of the Pakistan Air Force at the…

3 hours ago
  • Pakistan

PIA Issues Travel Advisories for UAE-bound Passengers Amidst Stormy Weather

  In light of the severe weather conditions in the United Arab Emirates (UAE), Pakistan…

4 hours ago
  • Business

Investors scour the globe for shelter as Wall Street shakes

Global investors are eyeing European and emerging market assets to protect themselves from further turbulence…

9 hours ago
  • Business

Fed to hold rates steady as inflation dims hopes for policy easing

U.S. central bank officials will conclude their latest two-day policy meeting on Wednesday with a…

9 hours ago
  • Business

Asian markets track Wall St down as Fed looms

Asian stocks sank in holiday-thinned trade Wednesday, tracking a sharp sell-off on Wall Street after…

9 hours ago
  • Business

Bank of Japan’s hawkish whispers drowned out by rowdy yen selloff

The Bank of Japan's decision to keep policy unchanged last week gave yen bears plenty…

9 hours ago