Extracts from the History of the Swiss Franc
Courtesy on EasyForex.com
SNB rate decision June 18th 2009
|Written by Michael J. Malpede|
|Wednesday, 17 June 2009 18:23 GMT|
|The Swiss National Bank (SNB) will hold its monetary policy meeting on Thursday June 18th.The SNB is expected to hold rate policy steady at 0.00%-0.75%.Recent Swiss economic data confirms deteriorating Swiss economy and declining inflation. Monday, Switzerland reported that producer and import prices declined the most in two decades. Swiss Q1 GDP contracted at its fastest pace in 15 years and Swiss May inflation fell at its fastest rate in 50 years. Swiss exports fell 14% since the start of 2009. SNB officials are concerned about the threat of deflation and the impact of strong CHF on inflation and Swiss export outlook.
At the March SNB meeting the SNB announced that it would intervene to prevent further CHF appreciation versus the EUR to counter the risk of deflation and to combat the dramatic deterioration in the Swiss economy. Since the March SNB policy meeting EUR/CHF has been holding above 1.5100. The SNB appears satisfied with the stability of the EUR/CHF cross. This may mean the SNB will tone down its intervention rhetoric. Note in the graph below the big EUR/CHF rally from 1.4500 to 1.5300 after the SNB intervened to buy EUR in March and the relative stability of the cross since.
Tags: monetary data,Swiss National Bank,Switzerland,Switzerland inflation