CHF: Hildebrand far from sanguine
CHF: Hildebrand far from sanguine
SNB Vice Chairman Phillip Hildebrand warned in comments published this morning that it would be ‘naive’ to call the end of the credit crisis, as it had now entered a second phase in which the real effects of economic weakness is hitting financial markets. He said monetary policy is especially in an uncomfortable situation and warned that commodities and food price developments could endanger price stability. His comments were not specifically targeted at monetary policy in Switzerland, but his concern over inflationary pressures are in contrast to SNB’s Jordan remarks earlier this month, where he stated that current SNB monetary policy is appropriate to achieve price stability in accordance with the bank’s
targets. The CHF has fallen from recent highs as risk sentiment improves but the lack of consolidation in risk appetite should remain supportive for the franc. We continue to see a hike in Q3 by the SNB.
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07-18-2008, 01:18 PM
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