The Bank of Switzerland at its September meeting did not decide to change the parameters of its monetary policy, which was in line with broad market expectations. Therefore, SNB will continue to strive for the 3-month Libor CHF rate to be close to zero. The bank also confirmed that it will act with the greatest determination against the fall of the EUR / CHF rate below 1.20 and that it is prepared to buy foreign currency for francs in unlimited amounts. This information is favorable from the point of view of approx. 730 thousand.
Polish borrowers paying back installments of franc loans
First of all, the zero interest rate on the Swiss currency means that currently the only cost for them is the bank’s margin. Secondly, SNB intervention measures on the EUR / CHF pair effectively reduce the pressure on a larger increase in the franc against the zloty.
The Central Bank of Switzerland has upheld all its actions taken in recent weeks (between August 3 and September 6), bearing in mind both the visible slowdown of the Swiss economy and the prospect of deflation next year. This, of course, is primarily the result of a huge re-evaluation of the franc.
Switzerland’s GDP is also negatively affected by the global economic slowdown and the related lower demand from abroad for Helvet products and services. SNB has announced that if the need arises, it will take further necessary actions.
The SNB decided today to lower the forecast of Switzerland’s GDP growth in 2011 to 1.5% -2.0% from around 2% forecasted by it in June, emphasizing that it will only be due to the good first half of this year because in the second it expects the economy to stop. In turn, in the case of inflation, he expects that this year it will be only 0.4%, next year there will be 0.3% deflation, and in 2013 the price increase will be 0.5