Swiss National Bank lowers the target range for the three-month Libor by 100 basis points to 0.5-1.5%
The Swiss National Bank (SNB) is lowering the three-month Libor target range by 100 basis points to 0.5-1.5% with immediate effect. It will provide the Swiss franc money market with a generous and flexible supply of liquidity in order to bring the Libor down to the middle of the target range.
As a result of the decline in the prices of raw materials and oil, price stability will be restored sooner than expected, and inflation is likely to fall below 2% as early as the end of this year. Moreover, international economic conditions have worsened appreciably, bringing a higher risk of a marked slowdown in economic activity in Switzerland next year. By lowering the Libor target range by 100 basis points, the SNB is making use of its room for manoeuvre.
The SNB will continue to monitor closely the situation on the money and foreign exchange markets.
Sign up to create alerts for Instruments,
Economic Events and content by followed authors
Free Sign Up Already have an account? Sign In
Add a Comment
We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
Enrich the conversation, don’t trash it.
Stay focused and on track. Only post material that’s relevant to the topic being discussed.
Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.