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Swiss National Bank meeting December 14, 2017

Swiss National Bank, SNB, central bank

Swiss National Bank, SNB, central bankIn the meeting on December 14, 2017, the Swiss National Bank (SNB) has decided to leave the interest rate unchanged at -0.75%. You can download the complete Monetary Policy (in pdf format) at the end of the article.

The Swiss National Bank conducts the country’s monetary policy as an independent central bank. It is obliged by the Constitution and by statute to act in accordance with the interests of the country as a whole. Its primary goal is to ensure price stability while taking due account of economic developments. In so doing, it creates an appropriate environment for economic growth.

The SNB has two head offices: one in Berne and one in Zurich. In addition, it maintains six representative offices (in Basel, Geneva, Lausanne, Lucerne, Lugano and St Gallen). Furthermore, it has 14 agencies operated by cantonal banks that help to secure the supply of money to the country.

The SNB implements its monetary policy by steering the interest rate level on the money market. The three-month Swiss franc Libor serves as its reference interest rate. The SNB can influence money market rates by means of its open market operations or adjust the interest rate on sight deposits held by banks and other financial market participants at the SNB. In order to influence monetary policy conditions, the SNB also intervenes in the foreign exchange market, as necessary.

Price stability is an important condition for growth and prosperity. Inflation and deflation, by contrast, impair economic activity. They hinder the role of prices in allocating labour and capital to their most efficient use and result in a redistribution of income and wealth. The SNB equates price stability with a rise in consumer prices of less than 2% per annum. Deflation – i.e. a sustained decrease in the price level – also breaches the objective of price stability. A medium-term inflation forecast serves as the main indicator for monetary policy decisions.

If you are interested, you can find all the previous Monetary Policy reports on the Swiss National Bank website. You also find the Schedule 2018. You can check the meetings scheduled for 2018 of the world's leading Central Banks and the last Central Banks reports.

pdf, format, file, download Monetary Policy Report

 

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