Trade Union Federation Warns SNB Against Further Currency Interventions
Published: Thursday, Sep 21st 2023, 10:40
Mise à jour le : Vendredi, 13 octobre 2023, 14:12
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The Swiss Trade Union Federation (SGB) welcomed the Swiss National Bank's (SNB) decision to pause interest rates. However, the SGB expressed concern that the SNB is considering further appreciation of the Swiss franc through foreign exchange interventions. According to the SGB, the fair exchange rate between the euro and the Swiss franc should be between 1.10 and 1.20, while the euro currently costs around 96 cents. The SGB argued that the SNB's "real" exchange rate is not suitable for assessing whether the Swiss franc is over- or undervalued. The SGB also argued that the SNB's decision to not raise interest rates further is sensible, as inflation in Switzerland has decreased and further increases could drive up rents. At the same time, the SGB noted that the global economy has cooled off.
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