The Swiss National Bank (SNB) is lowering the three-month Libor target range by 50 basis points to 1.5%-2.5% with immediate effect. It intends to hold the rate in the middle of the target range for the time being.
The global economic outlook has deteriorated more severely than anticipated, which will impact growth in Switzerland in the next few quarters; growth in 2009 might even be negative. Moreover, the economic slowdown, the decline in the price of oil and the appreciation of the Swiss franc are reinforcing the expected drop in inflation.
Today's relaxation of monetary policy provides an impetus to economic activity, and will not jeopardise the return to price stability.
The SNB will continue to provide the Swiss franc money market with liquidity in a generous and flexible manner, and will keep a close watch on the movement of the franc on the foreign exchange market.
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.