As we read, June 7 Swiss franc exchange rate For the first time since the outbreak of the war in Ukraine, it fell below 4.40 PLN. “These are still very high levels historically (before November 2021, the CHF/PLN exchange rate never exceeded 4.40 PLN), but it is already clear that it is lower than it was at the height of the panic in March, when the franc rate was at Storms costs about 5 PLN – notes “PB”.
While the weak Swiss franc doesn’t really worry anyone, inflation is becoming a growing problem – adds the newspaper.
It is reported that in May, Helvetians CPI inflation accelerated to 2.9%. compared to 2.5 percent in April. “It was the highest reading since September 2008, when investment bank Lehman Brothers declared bankruptcy,” he noted. For comparison, in January Swiss CPI inflation was just 1.6%. Thus, for the first time in more than 13 years, the price increases were above the Swiss National Bank (SNB) inflation target, he notes.
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Interest rates in Switzerland
From January 2015 The Swiss National Bank maintains the most negative interest rates In the world, it is still at -0.75%, the paper says. The Swiss have not cut rates below zero because their economy or financial system requires it. They wanted to discourage foreign investors from investing capital in francs, To stop the Franc’s appreciation against the Euro from being too steep.
In this sense, the Swiss system of negative interest rates is imposed by monetary policy – adds “PB”.
And according to the newspaper, the break from carrying money passively in the eurozone will give an opportunity to end this experiment also in Switzerland. UBS analysts expect The first rate hike of the Swiss National Bank (by 25 basis points) at the September 22 meeting” – He says.
Swiss franc loans will become more expensive?
The magazine quotes a note by UBS analysts to investors:
After the September rate hike, we expect the SNB to continue raising rates at each quarterly meeting until September 2023, bringing the monetary policy rate to 0.50%. Before the end of 2023
So it looks like this City in Swiss Francs By the end of the year, they can expect an increase in interest payments – at his discretion Diary. “However, if the trends from the past few weeks are maintained, this negative factor can be offset by the depreciation of the franc to the zloty” – he sums up.
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