>
> On Thu, Mar 12, 2009 at 9:10 AM, EDWARD wrote:
>
> In conjunction with lowering rates to 0.25% (3m libor target- this is important- its NOT
> the overnight or refi rate) and maintaining a 0-75bp range they also announced the following:
>
> *SNB PLANS TO BUY WISS FRANC BONDS
> *SNB SAYS TO BUY CURRENCIES TO AVOID FRANC APPRECIATION
>
Beggar thy neighbor export driven policy here too- yet another player trying to drive down their currency!
Failing to see the advantages of increasing domestic demand, seems most are turning to policies to drive exports.
Too bad we don’t have the leadership to take advantage of this once in a lifetime opportunity ratchet up our real standard of living.
>
> *SNB TO BUY SWISS FRANC BONDS BY PRIVATE SECTOR
>
> With the following statements:
>
> *SNB SAYS RISING FRANC COMMENTS TIGHTENS MONETARY CONDITIONS
> *SNB TO COUNTERACT RISK OF DEFLATION, ECONOMIC WORSENING
> *SNB SAYS SWISS FRANC APPRECIATED SUBSTANTIALLY SINCE AUGUST 07
> *SNB SEES ANNUAL INFLATION AT CLOSE TO ZERO FOR NEXT TWO YEARS
> *SNB EXPECTS INCREASED CONTRACTION IN 1Q
> *SNB SAYS SWISS EXPORT SECTOR PARTICULARLY HIT
> *SNB SAYS ECON WORSENING HAS CONTINUED IN PAST TWO MONTHS
> *SNB: SWISS AVG 2009 INFLATION SEEN -0.5%, 2010 INFLATION 0%
> *SNB SAYS MAGNITUDE OF ECONOMIC CONTRACTION IN 4Q UNEXPECTED
>
> They are deploying all weapons, rightly perceiving the vast threat to their economy
> and stepping up to the front lines- unlike the ECB who would still prefer to discuss
> targeted limits to easing rates and inflationary threats which do not exist.
>
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