Read the Beforeitsnews.com story here. Advertise at Before It's News here.
Profile image
By CentralBankNews.info (Reporter)
Contributor profile | More stories
Story Views
Now:
Last hour:
Last 24 hours:
Total:

Switzerland keeps rate, franc ceiling, cuts inflation and growth forecast

% of readers think this story is Fact. Add your two cents.


    The Swiss National Bank (SNB) kept its benchmark interest rate target unchanged, as expected, and affirmed its commitment to defend the exchange rate ceiling with “utmost determination,” but reduced its growth and inflation forecasts.
    The growth and inflation forecasts were reduced due to weaker growth worldwide and an underutilisation of production capacity in Switzerland along with the fact that the Swiss franc had not depreciated, as the SNB had expected.

    The SNB has kept its target range for the three-month Libor rate unchanged at zero to 0.25 percent since April 2009.

    The Swiss central bank launched its plan to keep the franc above 1.20 euros in September 2011 after it rose to near-parity with the euro as investors sought safe haven from the euro zone’s debt crises. 

     ”It remains committed to buying foreign currency in unlimited quantities for this purpose. The Swiss franc is still high and is weighing on the Swiss economy. For this reason, the SNB will not permit an appreciation of the Swiss franc, given the serious impact this would have on both prices and economic performance in Switzerland,” the SNB said in a statement. 


    The SNB has intervened heavily to defend the limit in recent months, with foreign reserves now worth more than 70 percent of the Swiss Gross Domestic Product.
    But the euro has risen following the European Central Bank’s (ECB) plan last week to buy an unlimited amount of euro zone bonds if needed. The Swiss franc was trading at 1.21 euros today.
    The SNB did not comment on the ECB’s move, but said financial markets remain fragile and “growth prospects are being dampened by the euro area crises, on the one hand, and the uncertainty surrounding forthcoming fiscal policy decisions in the US, on the other.”
    “In the second quarter of 2012, economic growth weakened worldwide. Although the emerging economies continued to underpin the global expansion, their rates of growth were lower than expected,” the SNB said.
    It reduced the growth forecast for 2012 to around 1.0 percent from 1.5 percent forecast in June. The Swiss economy contracted by 0.1 percent in the second quarter from the first for an annual growth rate of 0.5 percent, down from a rate of 1.2 percent in the first quarter.
    “The further deterioration in the inflation outlook stems partly from the unfavourable prospects for the global economy and a more pronounced underutilisation of production capacity in Switzerland, and partly from the fact that a depreciation of the Swiss franc has failed to materialise as expected,” the SNB said.
    The inflation forecast was cut to a negative 0.6 percent for 2012 and a positive 0.2 percent for 2013. In August, the Swiss inflation rate was minus 0.50 percent, down from a positive 0.7 percent in July.
    www.CentralBankNews.info

2012-09-13 07:23:05

Source: http://www.centralbanknews.info/2012/09/switzerland-keeps-rate-franc-ceiling.html


Source:


Before It’s News® is a community of individuals who report on what’s going on around them, from all around the world.

Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.

"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.

Before It’s News® is a community of individuals who report on what’s going on around them, from all around the world. Anyone can join. Anyone can contribute. Anyone can become informed about their world. "United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.


LION'S MANE PRODUCT


Try Our Lion’s Mane WHOLE MIND Nootropic Blend 60 Capsules


Mushrooms are having a moment. One fabulous fungus in particular, lion’s mane, may help improve memory, depression and anxiety symptoms. They are also an excellent source of nutrients that show promise as a therapy for dementia, and other neurodegenerative diseases. If you’re living with anxiety or depression, you may be curious about all the therapy options out there — including the natural ones.Our Lion’s Mane WHOLE MIND Nootropic Blend has been formulated to utilize the potency of Lion’s mane but also include the benefits of four other Highly Beneficial Mushrooms. Synergistically, they work together to Build your health through improving cognitive function and immunity regardless of your age. Our Nootropic not only improves your Cognitive Function and Activates your Immune System, but it benefits growth of Essential Gut Flora, further enhancing your Vitality.



Our Formula includes: Lion’s Mane Mushrooms which Increase Brain Power through nerve growth, lessen anxiety, reduce depression, and improve concentration. Its an excellent adaptogen, promotes sleep and improves immunity. Shiitake Mushrooms which Fight cancer cells and infectious disease, boost the immune system, promotes brain function, and serves as a source of B vitamins. Maitake Mushrooms which regulate blood sugar levels of diabetics, reduce hypertension and boosts the immune system. Reishi Mushrooms which Fight inflammation, liver disease, fatigue, tumor growth and cancer. They Improve skin disorders and soothes digestive problems, stomach ulcers and leaky gut syndrome. Chaga Mushrooms which have anti-aging effects, boost immune function, improve stamina and athletic performance, even act as a natural aphrodisiac, fighting diabetes and improving liver function. Try Our Lion’s Mane WHOLE MIND Nootropic Blend 60 Capsules Today. Be 100% Satisfied or Receive a Full Money Back Guarantee. Order Yours Today by Following This Link.


Report abuse

    Comments

    Your Comments
    Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

    MOST RECENT
    Load more ...

    SignUp

    Login

    Newsletter

    Email this story
    Email this story

    If you really want to ban this commenter, please write down the reason:

    If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.