Provided by: Swiss National Bank
Official Release: Statement

The Swiss National Bank held rates at 0.25% as was widely expected. The central bank said that it intends to continue to provide the economy with a "generous supply" of liquidity, but announced it would discontinue purchases of Swiss franc-denominated bonds issued by privates sector borrowers. That implies that the central bank see recovery prospects good enough that it is ready to unwind some of its looser monetary measures. The SNB also said that it would continue to "Act decisively"to prevent "any excessive appreciation" of the Swiss currency versus the Euro. The SNB has intervened in markets several times throughout 2009.  

Provided by: Swiss National Bank
Official Release: Statement

From the Release: "The Swiss National Bank is maintaining the expansionary monetary policy which it initiated last March. Despite the recent increase in the number of encouraging economic signs, uncertainty as to future developments remains considerable. In these circumstances, the SNB is opting for caution and retaining its monetary policy unchanged.

Consequently, the SNB is holding the Libor target range at 0-0.75%. It is still aiming to keep the Libor within the lower end of this range, i.e. at approximately 0.25%. It will continue to provide the economy with a generous supply of liquidity and, if necessary, to purchase Swiss franc bonds with a view to reducing risk premiam on long-term debt instruments issued by private sector borrowers. In addition, it will continue to act decisively to prevent any appreciation of the Swiss franc against the euro.

Provided by: Swiss National Bank
Official Release: Statement

Provided by: Swiss National Bank
Official Release: Statement

The Swiss Franc fell heavily against its rivals after the announcement by the central bank to cut rates by a quarter point, though more importantly was the bank's statement that it would interfere in currency markets to try and weaken the Swiss Franc. 

From the Release: "The economic situation has deteriorated sharply since last December, and there is a risk of negative inflation over the next three years. Decisive action is thus called for, to forcefully relax monetary conditions. Against this background, the Swiss National Bank (SNB) is making another interest rate cut and acting to prevent any further appreciation of the Swiss franc against the euro. To this end, it will increase liquidity substantially by engaging in additional repo operations, buying Swiss franc bonds issued by private sector borrowers and purchasing foreign currency on the foreign exchange markets...

The value of the Swiss franc has increased substantially since the beginning of the financial crisis in August 2007. This currency development has gained momentum since the National Bank's last assessment in December. Under the present circumstances, this represents an inappropriate tightening of monetary conditions. In view of this development, the SNB has decided to purchase foreign currency on the foreign exchange market, to prevent any further appreciation of the Swiss franc against the euro."

Provided by: Swiss National Bank
Official Release: Statement

From the Release: "The Swiss National Bank (SNB) is lowering the three-month Libor target range by 50 basis
points to 0.0–1.0% with immediate effect. It will continue to provide the Swiss franc money market with a generous and flexible supply of liquidity. It will take all necessary steps to gradually bring the Libor down to the middle of the target range.

The global economic environment has sharply deteriorated over the past few months. Economic activity has declined in both the US and Europe, and has slowed considerably in Asia. The situation on international financial markets has worsened further since September. The Swiss economy will be heavily affected by these developments. The SNB projects that GDP growth will be negative next year, between –0.5% and –1%.

The unfavourable economic outlook and the falling oil price have prompted a radical adjustment of the inflation forecast. Inflation will undergo a substantial decline over the course of next year, and will remain low thereafter. Assuming a constant rate of 0.5% for the three-month Libor, the SNB is now forecasting average annual inflation of 0.9% in 2009 and 0.5% in 2010.

The improvement in the inflation outlook has provided room for manoeuvre which the SNB is decisively using. By further lowering the Libor target range, the SNB aims to reduce the risk of a deterioration in the situation, and thus supporting economic activity."

Provided by: Swiss National Bank
Official Release: Statement

In a surprise unscheduled move the Swiss National Bank slashed interest rates by a record 100 basis points. The central bank has become more concerned over the economic outlook, and does not feel restrained by inflation fears. The move may also be a reaction to a fresh round of stock losses that have again rattled confidence in financial markets around the world. It was the third unscheduled move by the SNB since the beginning of October when rates were 2.75%. This also means that the bank will most likely not move on rates next month in its scheduled meeting, but instead give an assessment of the economy, though that is dependent on conditions in the banking sector.  

From the Release: "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."

Provided by: Swiss National Bank
Official Release: Statement

From the Release: "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." 

Provided by: Swiss National Bank
Official Release: Statement 

From the Release: "The global financial crisis has intensified and is having a considerable impact on the international economy. The slowdown in economic activity in the US and Europe is more severe than what the SNB had forecast at its last monetary policy assessment of 18 September 2008.

The Swiss economy is also affected by these developments. Economic growth for 2009 will be weaker than expected at the last assessment. In view of the improved inflation outlook, as a result of the economic downturn and the low oil prices, the SNB is now able to loosen its monetary policy reins.

The Swiss National Bank will continue to provide the Swiss franc money market with liquidity in a generous and flexible manner. It will keep a close watch on developments in the financial markets, so as to assess their impact on economic activity and the inflation outlook and be able to react swiftly, if necessary."

Provided by: Swiss National Bank
Previous Release: Monetary Policy Assessment