Arab Today, arab today swiss central bank to keep €12 forex cap
Last Updated : GMT 19:58:22
Arab Today, arab today
Arab Today, arab today

Swiss central bank to keep €1.2 forex cap

Arab Today, arab today

Arab Today, arab today Swiss central bank to keep €1.2 forex cap

Zurich - AFP

The Swiss central bank insisted on Thursday it will continue defending the floor rate of the Swiss franc against the euro, a policy which could come under increasing strain if more investment funds flow into the currency for safety. The Swiss National Bank also announced it was keeping its record low interest rates intact. But it warned that \"an appreciation of the Swiss franc would compromise price stability and would have serious consequences for the Swiss economy.\" The bank introduced a minimum exchange rate of 1.20 Swiss francs to the euro in September 2011, as fears of an imminent euro implosion coupled with concerns about soaring US debt levels, pushing investors to seek cover in the safe Swiss franc. While the Swiss economy has remained a rare bright spot on the European map, the surging value of the franc created headaches for exporters, which have seen margins eroded by unfavourable exchange rates. The Swiss franc has fallen recently amid a rosier outlook for the European common currency, sparking calls for the Swiss bank to remove its floor. But SNB pointed out Thursday that at 1.26 francs to the euro, \"the Swiss franc is still high,\" stressing that it stood \"ready to enforce the minimum exchange rate, if necessary, by buying foreign currency in unlimited quantities.\" It was essential to hold onto the floor, it said, \"in order to avoid an undesirable tightening of monetary conditions for Switzerland in the event of sudden upward pressure on the Swiss franc.\" Despite the floor, official data revealed earlier on Thursday that Swiss exports slumped 0.9 percent last month in terms of value to 17.4 billion Swiss francs amid weak demand in the EU, Switzerland\'s main trading partner. The country\'s vital watch industry suffered a set-back of a full 3.9 percent. And Capital Economics analyst Ben May said the franc was \"likely to remain a drag on growth,\" in Switzerland, adding \"we expect the economy to grow more slowly than the bank\'s forecasts imply.\" SNB said on Thursday it expected the economy to grow between 1.0 and 1.5 percent this year. It also said it expected inflation to tick in a bit lower than previously anticipated, at minus 0.3 percent this year -- meaning prices will fall, while the inflation forecast for 2014 and 2015 remained unchanged at 0.2 and 0.7 percent.In this environment, the bank said it was maintaining its record low target range for the three-month Libor rate, at 0.0-0.25 percent. It stressed that \"the risks for the Swiss economy remain high,\" pointing out that \"a weakening in global economic momentum cannot be excluded.\" \"Further developments in the euro area financial and sovereign debt crisis remain uncertain (and) tensions can reappear at any moment on global financial markets,\" it said. It added that Switzerland also faced a domestic risk of increased imbalances on the mortgage and real estate markets. May meanwhile suggested that if economic growth did not meet the bank\'s expectations, it \"may eventually take further action to support the economy, perhaps by employing negative interest rates.\" Switzerland is not a member of the European Union, and has control of its interest rates. In general the central bank has broadly shadowed monetary policy for the eurozone set by the European Central Bank in Frankfurt.

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today swiss central bank to keep €12 forex cap Arab Today, arab today swiss central bank to keep €12 forex cap

 



Arab Today, arab today
Arab Today, arab today Hats, scarves add beauty to women

GMT 19:10 2017 Friday ,17 February

Hats, scarves add beauty to women
Arab Today, arab today Tourist guide reveals methods of tourist attractions

GMT 17:46 2017 Saturday ,18 February

Tourist guide reveals methods of tourist attractions
Arab Today, arab today To release new antiques collection

GMT 20:33 2017 Friday ,17 February

To release new antiques collection
Arab Today, arab today Leader Omar Abdel Rahman dies in US prison

GMT 19:00 2017 Sunday ,19 February

Leader Omar Abdel Rahman dies in US prison
Arab Today, arab today Murder of 2 reporters in Dominican Republic

GMT 22:45 2017 Thursday ,16 February

Murder of 2 reporters in Dominican Republic
View News in Arabic - Business: مصارف
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Kidogo provides childcare for underserved

GMT 20:24 2017 Wednesday ,15 February

Kidogo provides childcare for underserved
Arab Today, arab today Tragic fluctuations of Bakhtiari's life revealed

GMT 06:50 2017 Wednesday ,15 February

Tragic fluctuations of Bakhtiari's life revealed
Arab Today, arab today London to tax old cars

GMT 14:06 2017 Friday ,17 February

London to tax old cars
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today Competes Sweden and Germans by S90

GMT 22:36 2017 Thursday ,16 February

Competes Sweden and Germans by S90
Arab Today, arab today Porsche reveals new 2018 Panamera

GMT 17:31 2017 Wednesday ,15 February

Porsche reveals new 2018 Panamera
Arab Today, arab today Actress Nadeen Al Rassi views art as her entity

GMT 07:30 2017 Saturday ,18 February

Actress Nadeen Al Rassi views art as her entity
Arab Today, arab today Teach monkeys to recognize themselves in mirror

GMT 20:41 2017 Wednesday ,15 February

Teach monkeys to recognize themselves in mirror

GMT 07:05 2017 Friday ,17 February

Singer Diana Karzon will issue a new album soon

GMT 06:40 2017 Friday ,10 February

MP calls for removing text from Islamic story

GMT 13:16 2017 Tuesday ,14 February

First fashion model with Down syndrome

GMT 10:26 2017 Tuesday ,14 February

Emergency UN meeting in Harare

GMT 14:04 2017 Tuesday ,14 February

"Lagom" new Swedish concept in interior design

GMT 12:07 2017 Thursday ,16 February

Bite-mimicking malaria vaccine

GMT 09:03 2017 Thursday ,16 February

Tour guide praises women’s beaches

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 21:42 2017 Sunday ,12 February

Rania al-Ghazali designs candles of bubbles
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday