Jordan SNB Can’t Rule Out Recession – Blake Paper

Jordan SNB Can’t Rule Out Recession – Blake Paper

ZURICH (Reuters) – Swiss National Bank President Thomas Jordan said in a newspaper interview published on Friday that the Swiss National Bank does not believe that the Swiss economy will slip into recession, but it cannot rule out the possibility of that.

“We don’t expect that at the moment. The Swiss economy should grow by 2% this year,” he was quoted by Blick as saying. The Swiss National Bank gave those expectations on Thursday when it raised the interest rate by 75 basis points into positive territory.

โ€œNext year, the situation may become more uncertain. But there are a number of risks that could have a negative impact on economic growth. For example, if energy prices rise sharply again or if the economy deteriorates abroad. Or if the coronavirus situation worsens . once again “.

“All of that will have a very negative impact. And then one can no longer completely rule out the possibility that the world economy, and therefore the Swiss economy as well, will slip into recession.”

Jordan said it is up to individual banks to decide what interest rates they offer to savers now that the Swiss National Bank has ended the era of negative rates.

“But the banks compete with each other and depend on savers bringing their money to the bank, and calculating their salaries there. In the medium term, this will also lead to higher interest rates on bank accounts,” he said.

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