Swiss National Bank has recognized

The Swiss National Bank has recognized the danger of negative rates

Deputy Chairman of the Board of the Swiss National Bank Fritz Tsurbryug on Thursday defended a policy of negative interest rates, despite the potential side effects that they can have on financial stability. They said that this policy has weakened the upward pressure on the franc.

"Negative interest rate charged by banks on demand deposits at the Swiss National Bank - a necessary measure of monetary policy"- Tsurbryug said.

"Negative interest rates contributes to the preservation of price stability and support economic activity in Switzerland", - he added.

Tsurbryug acknowledged that this policy has and side effects and "longer remain negative interest rates, the increased pressure will be more likely to bank profitability".

"At the same time may eventually worsen the imbalance in the real estate markets and mortgage lending Switzerland - Tsurbryug said. - These changes may increase the vulnerability of the banking system and the economy, and". He noted that although in the short term, long-term interest rates will remain at very low levels, "in the medium term there is a substantial space for their correction".

In October, consumer prices in Japan fell again, but deflationary pressures showed some signs of weakening.

The base consumer price index (excluding prices of fresh food and energy) in October decreased by 0.4% compared with the same period last year. Prices fell for the eighth month in a row, but the decline was less than in September, when it was 0.5%. Interrogated Nikkei economists expected decrease by 0.4%

Related posts

• 
  

  Australian Central Bank did not

  
  

  Australian Central Bank did not lower rates key Australian interest rate regulator remained unchanged. She is now at a record low for themselves the...

  
  


• 
  

  National Bank of Ukraine has destroyed

  
  

  National Bank of Ukraine has destroyed the shredder bills for 48 million hryvnia Today, the media are discussing the unusual and somewhat surprising...

  
  


• 
  

  USD JPY GBP CHF CAD AUD NZD Weekly

  
  

  USD, JPY, GBP, CHF, CAD, AUD , NZD: Weekly Forecast - Morgan Stanley USD: There are a catalyst to become bullish. Neutral. We believe that the current...

  
  

Next posts

• Production of cars in Japan in


• NZ Dollar Poised to Break Below


• US dollar weakened sharply in