A report out of the Swiss National Bank (SNB) today highlighted just how much havoc the super-strength Swiss franc (CHF) has wrought on the Alpine economy. Expectations were for a stark contraction of 7.5% in industrial output, yet the report’s actual results revealed a 9.2% decline for the month of May.
The rate statement out of the SNB regarding its 3-month inter-bank lending rate with London (Libor) should have addressed this downturn, yet appears to have shrugged at the news. SNB board member Jean Pierre Danthine commented that he saw no need for the bank to intervene in the market to weaken the top performing CHF as he views the Swiss economy to be in great shape.
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