How Switzerland peps up SMEs: Banks are encouraged to extend credit (at 0%). The treasury guarantees the loans. The SNB refinances banks and accepts the guaranteed loans as collateral. Fast and efficient. Eventually, some of these loans will turn into grants of course. But that’s ok; the first-best response to a shock with asymmetric effects does involve transfers if markets are incomplete.
You Might Also Like
Australian Dollar remains stable, upside seems limited due to heightened risk aversion
2025-02-25
The Australian Dollar appreciates despite escalating trade tensions.
The PBOC injected CNY300 billion through the one-year Medium-term Lending Facility (MLF), keeping the rate steady at 2%.
President Trump said tariffs on Canada and Mexico ‘will go forward’.
The Australian Dollar (AUD) recovers its daily losses as the US Dollar (USD) weakens amid declining US Treasury yields on Tuesday. Investors eagerly anticipate Australia’s monthly inflation report on Wednesday, as it’s expected to offer crucial insights into the future course of monetary policy after the Reserve Bank of Australia’s (RBA) recent hawkish rate cut.
The People’s Bank of China (PBOC) injected CNY300 billion on Tuesday via the one-year Medium-term Lending Facility (MLF), maintaining the rate at 2%.
USD/CHF Price Forecast: Trades sideways below 0.8850
2024-11-21
USD/CHF trades in a tight range below 0.8850 as investors seek fresh Fed interest rate cues. Donald Trump’s economic agenda will be inflationary for the US economy. Investors await flash US S&P Global PMI for November and SNB Schlegel’s speech, which are scheduled for Friday.
Tags: coronavirus,newsletter,Notes,Swiss National Bank,Switzerland
