On its meeting today the British central bank has left its key interest rate at as expected at 0.5%, the program for the purchase of securities will also remain unchanged. The Swiss National Bank, however, has not ruled out a further reduction in the prime rate. The euro, issued by negative numbers to the French consumer price inflation, lose some of its gains of the recent days, and again falls below the mark of 1.10 US-dollars.
BoE continues its loose monetary policy
At its meeting today, the Bank of England has, as expected, no changes made to its loose monetary policy . The key interest rate remains unchanged at a record low of 0.5%, on which it remains since more than six years now. The scale of quantitative easing also has not changed and remains at 375 billion. In medium term analysts expect a slight tightening of monetary policy, but the persistently low inflation in the United Kingdom argues against. This is due, primarily by the sharp drop in energy prices. The rate of the pound sterling responded behavior. After a low of 1,5112, or -0,43%, it revoverd to 1.570, or -0.8%.
Swiss National Bank calls another rate cut possible
The SNB is keen to keep the exchange rate of the Swiss franc at an internationally competitive level. By the end of 2014, the SNB ensured this by a guaranteed rate of 1.20 against the euro. After this measure was abandoned, the rate of the Swiss franc has risen by leaps and bounds. The euro fell to around 0.96 Swiss francs and is now risen to around CHF 1.08. However, the sudden strengthened Swiss franc brought the export-oriented Swiss economy distress, due to the the sharp rise in prices for Swiss products. To assess the statements made by SNB President Thomas Jordan correctly, the meeting of the Fed in the coming week has to be awaited. If the dollar appreciates by the expected turnaround in interest rates, this could relieve the pressure on the SNB in parts. A further rate cut would be, at least for now, not to be expected.
French consumer prices burden the euro
After the European single currency has appreciated in the last few days, it was burden today by the numbers of the French consumer price inflation. In forecasting no change in consumer prices, compared with the previous month, was expected, in fact, they have dropped by -0.2%. The decline in consumer prices can naturally raise the concerns of investors about the effectiveness of measures taken so far by the ECB, with the aim to raise the inflation to a level of about 2 percent. Significant signals about the development in consumer prices could be seen tomorrow, when the figures for changes in consumer prices in Germany will be published
The euro reacted with losses to today's figures and falls below $ 1.10. Currently the EUR/USD shows a decline of 0.52%, at a price of 1.0966. The yen also rose against the euro, currently at 0.60%, which corresponds to a price of 133.08.