Switzerland could be at risk of slipping into deflationary territory next year as a stronger Swiss franc dogs policymakers' efforts to get a handle on prices.
Switzerland could be at risk of slipping into deflationary territory next year as a stronger Swiss franc beleaguers policymakers' efforts to get a handle on price growth.
The Swiss National Bank cut interest rates for the third time this year in September, citing the strength of the safe-haven currency as a key driver of the country's falling inflation rate, alongside lower oil and electricity prices. the forecasts remained "within the range of price stability." He added that policymakers remain poised to adjust monetary policy further to get a handle on inflation.
Foreign exchange interventions take place when a bank buys or sells its currency in the FX market to raise or lower its value against another currency. Such measures can reduce price distortions, which can impact inflation, particularly in trade-heavy economies. Capital Economics said in a note last week that it now sees inflation in Switzerland falling to 0.3% in 2025, down from its previous estimate of 0.8%, due to the strength of the franc and lower oil and housing costs. That figure could turn negative in certain months, Prettejohn noted Monday.
"Once the policy rate tool is exhausted, then you will typically see the SNB intervening in the FX market if more easing is needed," Botteron told CNBC's "Squawk Box Europe" last month.
Philippines Latest News, Philippines Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
New Satoshi Nakamoto Statue Presented in Switzerland As Major Plan B Forum StartsSatoshi monument publicly unveiled in Lugano City as Bitcoin forum there begins with Anthony Scaramucci among the guests
Read more »
Former Seattle Kraken Defenseman Signs In SwitzerlandAfter not being able to find a contract with an NHL team, a former Seattle Kraken defenseman has signed a deal in Switzerland.
Read more »
Switzerland to close 9 centers for asylum-seekers as fewer people arrive than expectedSwiss authorities say they will shut nine temporary centers for asylum-seekers because the number of people seeking asylum recently has been below expectations. Switzerland has been building up refugee accommodation since 2022, putting in place 36 centers for asylum-seekers across the country.
Read more »
Watches of Switzerland Group Buys Online Media, Commercial Platform HodinkeeWatches of Switzerland Group has purchased specialist media and commercial platform Hodinkee in a bid to capture market share, especially in the U.S.
Read more »
Watches of Switzerland Group acquires HodinkeeFounder Ben Clymer will return to usher the digital editorial-turned-ecommerce platform into the future.
Read more »
Hodinkee Was Just Bought by the Watches of Switzerland GroupThe Watches of Switzerland Group just acquired the watch media company Hodinkee. The two hope to work together to benefit the watch community.
Read more »