Swiss National Bank Surprise 50 Basis Point Rate Hike, Raises to Stabilize Inflation

The Swiss National Bank surprise 50 basis point hike has isolated Japan as the lone adherent to extremely easy monetary policy. Prior was -0.75% and raised to -0.25%, so still negative rates which would be a nod to trying to limit Franc strength. The rate hike is to counter increased inflationary pressure The SNB cannot rule out further rate hikes to stabilize inflation Monetary policy assessment of 16 June 2022Swiss National Bank Tightens Monetary Policy Highlights Raises rates 50 bps to -0.25% … Continue reading “Swiss National Bank Surprise 50 Basis Point Rate Hike, Raises to Stabilize Inflation”

Swiss National Bank’s Zurbruegg Says Not Focus of Monetary Policy to Curb Risk to Financial System Vulnerabilities

The Swiss National Bank Vice Chairman Fritz Zurbrügg in a speech in Geneva Tuesday said the focus of monetary policy is price stability and economic developments, and not curbing financial system vulnerabilities”. He added “Moreover, we have observed an increase in affordability risks over recent years.” “In Switzerland, vulnerabilities in the residential real estate and mortgage markets have increased since the onset of the pandemic,” Zurbruegg said in a speech in Geneva. “Moreover, we have observed an increase in affordability risks … Continue reading “Swiss National Bank’s Zurbruegg Says Not Focus of Monetary Policy to Curb Risk to Financial System Vulnerabilities”