Swiss inflation turns negative for the first time in four years

Unlock the editor’s digestion free

FT editor Roula Khalaf, chooses his favorite stories in this weekly newsletter.

Switzerland’s inflation rate was immersed in a negative area for the first time in four years, the country will reduce sub-zero interest rates in an offer to reduce deflation and flying currency.

In May, the annual inflation was 0.1 percent, the accommodation prices in the index of air transport and consumer prices showed the information published on Tuesday. The months increased by 0.1 percent a month.

Traders, in recent months have increased the request of the Swiss National Bank Reduce interest rates Zero Inflation and Switzerland Frank’s value, an increase in an investor in the value of a currency of the US President Donald Trump’s trade war.

Frank is one of the best-performance currencies this year, about 11 percent against the dollar, walks with peers like euros and pounds. This was the first time since the shock in Frank in 2015, the first week of SFR0.80 in the first week.

A stronger Frank drags down Switzerland inflation by reducing the value of imports.

Mike Riddell, a fund manager in loyalty, deflation said the price of applause of SNB to SNB to the SNB toilet.

He estimated that the “any further higher currency pressure” triggers the FX market to weaken the currency of the Central Bank.

This will take the risk that provokes the irinial of the added white house Switzerland In the last weeks of Trump’s First Presidency, “Currency Manipulators” list. Later, the joe was removed from the list under the Biden administration.

Switzerland historically wanted to restore the currency in the financial market due to the relatively political and economic stability of the country.

This SNB In 2022, he set up a wide portfolio of international assets from scratch from scratch from scratch from scratch from scratch.

The market will now reduce the two quarterly ratio of the SNB meeting, which will now receive a policy rate 0.25 percent.

Short-term government bonds were immersed in a negative area, reached a two-year bond product with a two-year bond product, which was the lowest in three years. The evaluation government is in a negative area for up to six years.