SNB May Hold Rate as Surging Franc Threatens Recovery
17th September 2010
The franc has strengthened about 6.2 percent against the euro since June 17.
The Swiss central bank today may keep borrowing costs on hold as the franc's surge prevents policy makers from raising rates to fight inflation threats.
The Swiss National Bank, led by Philipp Hildebrand, will leave the three-month Libor target rate at 0.25 percent, according to 18 of 19 economists in a Bloomberg News survey. UBS AG is the only bank forecasting an increase to 0.5 percent. The central bank will publish its decision at 2 p.m. in Zurich.
SNB policy makers are weighing the risks of faster inflation against the danger that a stronger franc will undermine exports and hurt an economic recovery. Investors have snapped up the Swiss currency and other securities seen as havens on concern that the global recovery is losing steam. Japan intervened yesterday for the first time since 2004 to weaken the yen and protect the country's recovery.
"It is the potential for a further substantial appreciation in the franc combined with a more severe global slowdown that is holding the SNB back for now," said Dirk Schumacher, an economist at Goldman Sachs Group Inc. in Frankfurt. "We continue to expect the first hike in December."
Already a member of Property Secrets?
To view the rest of this article read below....
To view this you need a Property Secrets Silver membership...
Join over 100,000 property investors and gain full insight and knowledge from our team of experts and advisors with thousands of articles, blogs and reports, free downloads, events guides, property deals and much much more.... 100% FREE OF CHARGE!
How our FREE SILVER Membership can benefit you?
- We have thousands of articles and pages of content written by our team of industry leading contributors
- Including expert written blogs on property markets from across the world
- updates and analysis from some of the leading players around
- Financial support from our partners on Mortgaging, Insurance, Currency, Tax & more
- Property Deals delivered to your inbox each week
- Keep up to date with latest events, up & coming ventures & new opportunities both on site & through email with our weekly newsletter
- Select FREE spreadsheet downloads & PDF eBooks including Property Market Profiles and variously contributed guides
- Capital Gains Tax Calculator, Currency Converter & Automatic Mortgage Reminder
- Online Support & much much more including.....
FREE: 2012 Property Market Profile written by Alan Forsyth
Available via instant download in PDF format
FREE: 7 Fatal Mistakes to Avoid as a Property Investor
Available in a 7 day email course or instant PDF download
Simply enter your email address below and you will be registered to receive all the above benefits & more instantly 100% FREE of charge! No hidden clauses!!
