Latest news with #GianLuigiMandruzzato
The Sun
4 days ago
- Business
- The Sun
Swiss National Bank denies currency manipulation after being put on US watch list
ZURICH: The Swiss National Bank said on Friday it would intervene in foreign currency markets where necessary to keep inflation on track after the United States added Switzerland to a list of countries being monitored for unfair currency and trade practices. The SNB denied being a currency manipulator after the publication of the U.S. Treasury Report on Thursday, but said it would continue to act in Switzerland's interests as the strong franc helped push inflation into negative terrain last month. 'The SNB does not engage in any manipulation of the Swiss franc,' it said. 'It does not seek to prevent adjustments in the balance of trade or to gain unfair competitive advantages for the Swiss economy.' The SNB said it was in contact with U.S. authorities to explain Switzerland's economic situation and monetary policy, and would continue to use interest rates and forex market interventions if necessary to pursue its inflation target of 0-2%. Swiss inflation hit a four-year low in May, with prices falling by 0.1%. The SNB declined to say whether further talks with the United States were planned, but said its monetary policy was 'geared towards the needs of Switzerland.' Switzerland met two of the U.S. Treasury's concerns regarding trade flows and its current account, but not on foreign currency interventions. SNB forex exchange purchases in 2024 were 'minimal,' Treasury said. In 2024, the SNB bought only $1 billion in foreign currencies, equivalent to only 0.1% of Swiss GDP, well below the Treasury's threshold of 2% of economic output. EFG Bank economist GianLuigi Mandruzzato said the SNB would be mindful of the Treasury report, but still pursue its mandate. 'My feeling is that there should be little reason for concern from a Swiss perspective,' he said. 'However, with the Trump administration, anything can happen.'
The Sun
4 days ago
- Business
- The Sun
SNB denies manipulation, vows to defend franc if needed
ZURICH: The Swiss National Bank said on Friday it would intervene in foreign currency markets where necessary to keep inflation on track after the United States added Switzerland to a list of countries being monitored for unfair currency and trade practices. The SNB denied being a currency manipulator after the publication of the U.S. Treasury Report on Thursday, but said it would continue to act in Switzerland's interests as the strong franc helped push inflation into negative terrain last month. 'The SNB does not engage in any manipulation of the Swiss franc,' it said. 'It does not seek to prevent adjustments in the balance of trade or to gain unfair competitive advantages for the Swiss economy.' The SNB said it was in contact with U.S. authorities to explain Switzerland's economic situation and monetary policy, and would continue to use interest rates and forex market interventions if necessary to pursue its inflation target of 0-2%. Swiss inflation hit a four-year low in May, with prices falling by 0.1%. The SNB declined to say whether further talks with the United States were planned, but said its monetary policy was 'geared towards the needs of Switzerland.' Switzerland met two of the U.S. Treasury's concerns regarding trade flows and its current account, but not on foreign currency interventions. SNB forex exchange purchases in 2024 were 'minimal,' Treasury said. In 2024, the SNB bought only $1 billion in foreign currencies, equivalent to only 0.1% of Swiss GDP, well below the Treasury's threshold of 2% of economic output. EFG Bank economist GianLuigi Mandruzzato said the SNB would be mindful of the Treasury report, but still pursue its mandate. 'My feeling is that there should be little reason for concern from a Swiss perspective,' he said. 'However, with the Trump administration, anything can happen.'
Business Recorder
4 days ago
- Business
- Business Recorder
Swiss National Bank denies currency manipulation after being put on U.S. watch list
ZURICH: The Swiss National Bank said on Friday it would intervene in foreign currency markets where necessary to keep inflation on track after the United States added Switzerland to a list of countries being monitored for unfair currency and trade practices. The SNB denied being a currency manipulator after the publication of the U.S. Treasury Report on Thursday, but said it would continue to act in Switzerland's interests as the strong franc helped push inflation into negative terrain last month. 'The SNB does not engage in any manipulation of the Swiss franc,' it said. 'It does not seek to prevent adjustments in the balance of trade or to gain unfair competitive advantages for the Swiss economy.' The SNB said it was in contact with U.S. authorities to explain Switzerland's economic situation and monetary policy, and would continue to use interest rates and forex market interventions if necessary to pursue its inflation target of 0-2%. Swiss inflation hit a four-year low in May, with prices falling by 0.1%. The SNB declined to say whether further talks with the United States were planned, but said its monetary policy was 'geared towards the needs of Switzerland.' Switzerland met two of the U.S. Treasury's concerns regarding trade flows and its current account, but not on foreign currency interventions. SNB forex exchange purchases in 2024 were 'minimal,' Treasury said. Swiss National Bank bought forex worth 1.2 billion francs in 2024 In 2024, the SNB bought only $1 billion in foreign currencies, equivalent to only 0.1% of Swiss GDP, well below the Treasury's threshold of 2% of economic output. EFG Bank economist GianLuigi Mandruzzato said the SNB would be mindful of the Treasury report, but still pursue its mandate. 'My feeling is that there should be little reason for concern from a Swiss perspective,' he said. 'However, with the Trump administration, anything can happen.'
Reuters
05-03-2025
- Business
- Reuters
Swiss inflation falls to lowest in nearly four years
ZURICH, March 5 (Reuters) - Swiss inflation fell to its lowest level in nearly four years in February, government data showed on Wednesday, increasing the likelihood the Swiss central bank will cut rates later this month. Consumer prices rose by 0.3% last month compared with a year earlier, the smallest increase since April 2021, as imports became cheaper. Although some items, such as rents and packaged holidays, were more expensive than a year earlier, other items like second-hand cars, personal care products and medicines were cheaper, pushing the inflation rate down from the 0.4% rate in January. Prices for domestic products rose by 0.9% while imported goods fell by 1.5%, bringing the overall figure down, the figures from the Federal Statistics Office showed. They raise the likelihood the Swiss National Bank will cut its policy rate from the current 0.5% at its next meeting on March 20 to prevent inflation falling below its 0-2% target range. Markets have priced in an 89% probability the SNB will cut to 0.25%, while there is a 22% probability that rates will be reduced to 0% at the SNB's second meeting this year on June 19. "A 25 basis point cut is the most likely action by the SNB later this month," said GianLuigi Mandruzzato, an economist at EFG Bank. "Inflation is very low, but in line with the SNB's forecasts, while there could be upside risks later in the year. Domestic and core inflation at 0.9% are also right in the middle of the SNB's target range so there is no need for more drastic action." The SNB declined to comment on the latest data, although Chairman Martin Schlegel has said the central bank expected inflation to remain within its target range over the next three years. "With a view to future decisions, we are not ruling anything out. If necessary, we would also reintroduce the negative interest rate," he told Swiss newspaper Tages-Anzeiger in an interview published on Saturday, before the latest inflation data.
