23 Mar 2015
Switzerland should implement foreign currency QE – IMF
FXStreet (Mumbai) - The Swiss National Bank (SNB) board member Thomas Moser said today that the bank is open to the idea of foreign currency asset purchases suggested by the International Monetary Fund (IMF).
In its annual assessment, the IMF proposed that Switzerland should “ease monetary policy further" to bolster growth and reduce risks related to "very low inflation".
The IMF states, “Purchases could consist of foreign currency assets, and perhaps some domestic assets - though scope for this is more limited - with the pace of purchases adjusted as necessary in response to developments. In addition the policy rate should be maintained at its current negative level for now, as this has been helpful in reducing franc appreciation and deflationary pressures.”
In its annual assessment, the IMF proposed that Switzerland should “ease monetary policy further" to bolster growth and reduce risks related to "very low inflation".
The IMF states, “Purchases could consist of foreign currency assets, and perhaps some domestic assets - though scope for this is more limited - with the pace of purchases adjusted as necessary in response to developments. In addition the policy rate should be maintained at its current negative level for now, as this has been helpful in reducing franc appreciation and deflationary pressures.”