Swiss prices fell by 0.1% in November 2019, the sixth time in 12 months. But not everything is cheaper. Prices fell in December 2018 (-0.3%), January 2019 (-0.3), July (-0.5), September (-0.1), October (-0.2%) and November 2019 (-0.1). When combined with the low inflation experienced in the other 6 months the 12-month price drop is […]
Swiss National Bank announcement pushes franc higher
Brought to you by Investec Switzerland. The Swiss National Bank (SNB) announced today that it is maintaining its expansionary monetary policy. The target range for three-month Libor remains unchanged at between –1.25% and –0.25%, and the interest rate on sight deposits with the SNB stays the same at –0.75%. The announcement pushed the franc as high […]
Bad news for savers. Swiss pension rates cut.
This morning the Swiss federal council, the 7-member executive branch of Switzerland’s government, decided to reduce the minimum interest rate pension funds must pay savers. Starting on 1 January 2016, the minimum rate will be 1.25% instead of the current minimum of 1.75%. On 30 August 2015, the federal pensions commission decided by a large […]
Swiss prices continue to fall in July
Switzerland is becoming accustomed to deflation. The Swiss consumer price index fell by 0.6% in July 2015 and the index is now 1.3% lower than in July 2014 and at its lowest level since October 2007. July 2015 deflation was largely driven by the falling price of imports – driven by a strong Swiss franc, […]
Switzerland – staring down the barrel of deflation
The recent rise in the Swiss franc is driving deflation in Switzerland. The prices of imported goods are declining and there is talk of reducing salaries in some corners. Deflation is bad for an economy, particularly for the heavily indebted – your mortgage remains the same even if your salary declines and Government debts increase […]
