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Interest Rate Announcement
The policy boards of a country's central bank get together every 4-6 weeks, or sometimes every quarter (Switzerland) to decide on the country's base interest rate. The central bank's role is to limit inflation, while also maintaining stable economic growth. To heed of inflation, a central bank will raise rates; and during times of poor economic growth, the bank will work to lowers rates in order to stimulate growth.
Main Indicator: SNB Interest Rate Statement
Most Recent Release
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Actual | Forecast | Previous | Revised Form | |
| 2.75% | 2.75% | 2.75% | N/A | ||
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Provided by: Swiss National Bank
The SNB held rates for the second session in a row, after 2 years of rate hikes. Growth expectations have been scaled back. Inflation expectations have also reduced. The Swiss franc, which is a safe haven currency has been gaining steadily in these times of financial market uncertainty. Against the ailing greenback, it is coming real close to parity as the USD/CHF is hugging at the 1.01 level today. |
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Table of Past Data
| 9/14 | 12/14 | 3/15 | 6/14 | 9/13 | 12/13 | 3/13 | |||||
| Actual | 1.75% | 2.00% | 2.25% | 2.50% | 2.75% | 2.75% | 2.75% | ||||
| Forecast | 1.75% | 2.00% | 2.25% | 2.50% | 2.75% | 2.75% | 2.75% | ||||
| Previous | 1.50% | 1.75% | 2.00% | 2.25% | 2.50% | 2.75% | 2.75% | ||||
| Revised From | N/A | N/A | N/A | N/A | N/A | N/A | N/A | ||||
Past Releases
|
Actual | Forecast | Previous | Revised Form | |
| 2.75% | 2.75% | 2.75% | N/A | ||
|
See Statement from the Swiss National Bank The Bank kept rates steady, and projected a growth rate of around 2% for 2008, after growing 2.5% in 2007. It noted that the Swiss economy was in very good shape and that employment and domestic demand was robust. However, upheaval in financial markets may jeopardize growth. The bank see inflation increasing in the first half of 2008 as a result of higher oil prices, but that it would ease in the second half of the year and in 2009. |
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|
Actual | Forecast | Previous | Revised Form | |
| 2.75% | 2.75% | 2.50% | N/A | ||
|
The Swiss central bank raised its benchmark interest rate to 2.75% in an attempt to head off inflation, even as rising credit costs threaten to weigh on economic growth. Whereas the other two central banks in Europe, the ECB and the BOE held rates steady last week amid concerns the US housing slump will harm economic growth, the SNB went ahead and increased rates. Switzerland’s benchmark rate remains the second lowest of major economies after Japan’s 0.5%, and investors use it to fund carry trade. As a result, the Franc has declined 2.3% against the euro this year, making its exports cheaper, but also increasing the prices of imports. The SNB put out its forecasts saying the economy will grow about 2.5% this year after expanding 3.2% in 2006, and that inflation will average 0.6% this year, before accelerating to 2% in mid-2008. |
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|
Actual | Forecast | Previous | Revised Form | |
| 2.50% | 2.50% | 2.25% | N/A | ||
| The SNB cited that the weakness of the Swiss Franc has "partially neutralised the impact of the last increase in interest rate." The weak Franc will also push up inflation which has been contained due to drop in oil prices late 2006. It expects inflation to rise mid-2007, and thus the rate hike. | |||||
|
Actual | Forecast | Previous | Revised Form | |
| 2.25% | 2.25% | 2.00% | N/A |
|
Actual | Forecast | Previous | Revised Form | |
| 2.00% | 2.00% | 1.75% | N/A |
|
Actual | Forecast | Previous | Revised Form | |
| 1.75% | 1.75% | 1.50% | N/A |