Tag Archive: Switzerland Consumer Price Index

SNB Monetary Policy Assessment and Critique

We examine the SNB monetary assessment statement of March 17 and the Swiss economy. We explain why negative rates may be a "toothless measure" if a central bank wants to weaken a currency. They have rather an inexpected consequence, they slow down GDP growth, in particular for banks and pension funds.

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Swiss Consumer Price Index in February 2016: -0.8 percent against 2015, +0.2 percent against last month

08.03.2016 09:15  - FSO, Prices (0353-1602-40) Swiss Consumer Price Index in February 2016 Neuchâtel, 08.03.2016 (FSO) – The Swiss Consumer Price Index (CPI) increased by 0.2% in February 2016 compared with the previous month, reaching 99.8 points

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Lessons from History: The Volcker Moment and the First Cap on CHF



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The two phases of CHF appreciation… and what is in between

We show the two phases or "two innings" of Swiss franc appreciation: The risk aversion phase and the high inflation phase. With the weakening of emerging markets and the strengthening of the United States in 2013/2014, the Swiss National Bank (SNB) had won the first battle in the war against financial market, the "risk aversion game", the first inning in two-part match. Risk aversion is lower because the United States recovered with weaker oil...

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What Caused The Swiss Financial Tsunami? Three Reasons, One Trigger, One Chain Reaction

In this post we give our (Swiss) view for the financial tsunami on January 15. The SNB has preferred its secondary mandate, namely financial stability, and the elimination of risks on its own balance sheet caused by ECB QE. It will not obey its primary target, price inflation, for the next three to five years. While in the mid-term (5 -10 years) inflation should move up. Differing perceptions between Switzerland and the Anglophone world about...

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Currencies: Going cuckoo for the Swiss

CURRENCIES don't normally move that far on a daily basis—2 to 3% is a big shift. The exception is when a country on a fixed exchange rate suffers a devaluation; then a 20-30% fall is a possibility. But a 20-30% plus upward move is almost unprecedented. That, however, is what happened to the Swiss franc on January 15th, as Switzerland's central bank abandoned its policy (instituted back in 2011) of capping the currency at Sfr1.20 to the euro.

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Downwards and Upwards Drivers of Swiss Inflation

In the following we present the drivers of Swiss price inflation. We first present the components of the consumer price index. Then we explain which are upwards-drivers of inflation and which ones cause downwards adjustments.

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History of SNB Sight Deposits, 2014



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Peter Schiff’s Message to Switzerland: Preserve Your Wealth, Gold is Better than Pegging to the Euro

Peter Schiff, an Austrian economist who predicted the financial crisis urges the Swiss to preserve their wealth. Therefore, they should vote yes in the gold referendum. He thinks that buying gold is better than pegging to the euro. The Swiss will be better off if they possess a strong currency. Pegging to the euro implies that the Swiss Franc will become a new Italian Lira, Peseta or French Franc.

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Swiss Gold Referendum and SNB’s Opinion: An Exchange of Arguments

Already in 2013, the Swiss National Bank (SNB) spoke out against the gold initiative and revealed that the Swiss gold is stored mostly in Switzerland and 20% in the UK and 10% in Canada. There is no Swiss gold in the United States according to SNB chairman Jordan. In this post we provide an exchange of Jordan's arguments against the ones of the gold initiative. We also state our view that is not as strict as the one of the referendum proponents.

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Swiss Franc and Swiss Economy: The Overview Questions

Before the upcoming SNB monetary policy assessment meeting on June 19th, rumors started the SNB could follow the ECB and set negative rates on banks' excess reserves. We would like to deliver the whole background, starting with the question why Swiss inflation has been so low in the past and why CHF always appreciated.

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Swiss Franc History, from 2004 to 2009: The undervalued franc

A Critical History of the Swiss Franc: During the "global carry trade" period between 2004 and 2007, the euro strongly appreciated against the Swiss franc. Most astonishingly this happened, despite the fact that the Swiss GDP growth was on average 0.5% higher

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Swiss Franc History: The long-term view and the comparison with gold

We establish a long-term view and history of the Swiss franc. We compare the franc with gold.

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Inflation Difference between Eurozone and Switzerland Narrows to 0.3 percent

According to Swiss Statistics the inflation rate has risen to 0.2% y/y – as for both the Swiss CPI standard and the European HICP standard.

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The IMF Assessment for Switzerland 2014 and our critique

In the 2014 assessment for Switzerland by the International Monetary Fund, several sentences sparked in our eyes; we will contrast them with our recent critique.

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Inflation Difference between Eurozone and Switzerland Narrows to 0.5 percent

Another five months till Swiss inflation is higher? When the European economy starts to expand again, who will hike rates first, the SNB or the ECB? December Update According to Swiss Statistics the inflation rate remained stable at 0.1% y/y, while the inflation measured by the European HICP standard was +0.3% y/y, slightly higher than … Continue reading »

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History of SNB Sight Deposits, 2013



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Fast CHF and Gold Price Movements

Our CHF and Gold News Bar on our home page explains daily CHF and gold price movements based on the most important fundamental indicators in a few sentences. Keep in mind that the only Swiss fundamental data that is able to move the CHF must come from the SNB and from Swiss inflation data – … Continue reading »

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SNB’s Jordan Responds to the Critique from the Peterson Institute: What They Forgot to Ask Him …

SNB's Jordan Responds to the Critique from the Peterson Institute: What They Forgot to Ask...

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