- Prolonged low rates may lead to instability
- European banking system remains vulnerable
- Can’t exclude recurrence of financial market tension
- Low rates don’t pose threat to price stability but they don’t come without risks
- Inflation pressures will be contained for some time
- Rates will gradually recover to normal levels
- Swiss franc is a highly valued currency
- Structural problems in Europe persist, downside risks remain substantial
- Indicators hint at fairly robust H2 in Swiss economy
Jean-Pierre Danthine speaking in Luasanne.
I remember the days when a mere utterance of “franc cap” got you 20 pips in EUR/CHF
