Last quote by Thomas Jordan
Thomas Jordan quotes
We're convinced that given the difficult situation with an overvalued Swiss franc, a negative output gap, and negative inflation, the current approach is the right one - expansion in monetary policy with negative rates and willingness to intervene.
This is easier said than done. These structural reforms are difficult to pass through parliaments…there is a certain risk that this will be postponed.
Our monetary policy that is very expansive is aiming to push it back into positive territory in the medium term.
The overvaluation is less important than it was a year ago.
We have gone relatively far with the negative interest rates. At present we are monitoring the situation closely. We do not rule out anything.
The situation still presents considerable risks. It is possible that structural adjustment in China will continue to weigh on industrial activity and investments globally. Furthermore, the structural weakness in Europe continues.
Negative interest rates have allowed us to re-establish the traditional gap between Swiss rates and interest rates abroad. The negative interest rates and our readiness to intervene in the foreign exchange market aims to reduce the pressure on the franc. Our monetary policy thus contributes to stablising prices and supporting economic growth.
We are aware that many companies are still facing very tough market conditions. export volumes and prices in recent months showed many companies were lowering prices to cope with the strong currency.