Swiss Franc has every prospect to continue its growth
At the Forex currency market luck is still with Swiss Franc today - as it has grounds to proceed with an ascending trend.
There were no important changes in the country's economy. Representatives of the Bank of Switzerland stated earlier that there would not be any mechanical responses to the inflation forecasts, while the threat of inflation was going down. It is also unlikely that the Franc's large scale growth will be possible. SHNB pointed out that the worst is over in the recession. GDP forecast for 2010 - at the level of 1.5%. The interest rate in Switzerland is in the target range of 0-0.75%.
As for the country's economic situation in general we would point out that starting from 2012, new regulations will be introduced in the country. According to the new regulations, banks will have to accumulate their own funds to withstand financial problems in the future. "A full set of regulations will be ready by the end of 2010. Regulations will be gradually introduced alongside with the improvement of the economic financial condition. The regulations introduction and implementation are scheduled for 2012" says the recently published document.
Note, that consumption index grew up dramatically in March in Switzerland - to 1.7 from the previous level of 1.2, reverting to the pre-crisis level. This is evidenced by the UBS index calculations. The index is based on the following data: the monthly retail trade sector business activity, new vehicles registrations, hotel rooms' reservations in Switzerland, consumer sentiment index, the bank credit cards transactions. The index enables forecasting individual consumption level of Switzerland's population for about 3 months in advance.
Earlier the Switzerland Bank President Mr Hildebrand stated that the bank can buy considerable amount of foreign currency to keep deflation in check and soothe the Swiss franc rate. "We will not let deflation come back and our position is very clear. The instruments we have available are plain: we buy foreign currency and the purchase volume can be high" - he stressed.
"You should look at Switzerland's economic development. It was quite steady last year, the drop was only by 1,5%; it is a good index, compared to many other countries. I would say that we have done a lot to prevent more dramatic recession" expressed Mr. Hildebrand.
There were no important changes in the country's economy. Representatives of the Bank of Switzerland stated earlier that there would not be any mechanical responses to the inflation forecasts, while the threat of inflation was going down. It is also unlikely that the Franc's large scale growth will be possible. SHNB pointed out that the worst is over in the recession. GDP forecast for 2010 - at the level of 1.5%. The interest rate in Switzerland is in the target range of 0-0.75%.
As for the country's economic situation in general we would point out that starting from 2012, new regulations will be introduced in the country. According to the new regulations, banks will have to accumulate their own funds to withstand financial problems in the future. "A full set of regulations will be ready by the end of 2010. Regulations will be gradually introduced alongside with the improvement of the economic financial condition. The regulations introduction and implementation are scheduled for 2012" says the recently published document.
Note, that consumption index grew up dramatically in March in Switzerland - to 1.7 from the previous level of 1.2, reverting to the pre-crisis level. This is evidenced by the UBS index calculations. The index is based on the following data: the monthly retail trade sector business activity, new vehicles registrations, hotel rooms' reservations in Switzerland, consumer sentiment index, the bank credit cards transactions. The index enables forecasting individual consumption level of Switzerland's population for about 3 months in advance.
Earlier the Switzerland Bank President Mr Hildebrand stated that the bank can buy considerable amount of foreign currency to keep deflation in check and soothe the Swiss franc rate. "We will not let deflation come back and our position is very clear. The instruments we have available are plain: we buy foreign currency and the purchase volume can be high" - he stressed.
"You should look at Switzerland's economic development. It was quite steady last year, the drop was only by 1,5%; it is a good index, compared to many other countries. I would say that we have done a lot to prevent more dramatic recession" expressed Mr. Hildebrand.
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