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Switzerland may have
to use the printing press to get rid off deflation
The Swiss National Bank has cut interest rates to 0.5pc and opened the
door for emergency stimulus, becoming the first country in Europe to
flirt with zero policy rates.
The Swiss National Bank has cut interest rates to 0.5pc and opened the
door for emergency stimulus, becoming the first country in Europe to
flirt with zero policy rates
Thomas Jordan, a board member of the SNB, said the bank was mulling
extreme measures to stabilise the financial system and cushion the
economy as it falls into recession next year.
"We could engage in quantitative easing and we could intervene in
foreign exchange markets or we could buy up bonds and try to influence
long-term interest rates. All these options are open and we're not
limited in any way in choosing from among these instruments," he said.
Quantitative easing is the tool pioneered by the Bank of Japan to
stave off deflation. It is tantamount to printing money.
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