PARIS (MNI) – The Swiss National Bank has revised down its
projections for U.S. growth this year and next and revised up its
outlook for the Eurozone, according to the central bank’s quarterly
bulletin released Friday.
The euro is also expected to be stronger against the dollar and oil
costlier in dollar terms.
The updated projections are part of the SNB’s assumptions for the
new domestic inflation forecasts unveiled in its monetary policy
decision on September 16. Annual inflation rates are now expected to
fall to around zero in 1Q 2011 and recover slowly to just over 2% by 2Q
2013, assuming no change in the three-month Libor rate.
The SNB now expects U.S. GDP to grow by 2.7% this year compared to
+3.2% projected in June. Expected Eurozone growth has been revised up to
1.7% from 1.1%. Next year, the U.S. economy is seen expanding by 2.5%,
down from +2.8% forecast in June. The forecast for the Eurozone was left
unchanged at +2.2%. Also unchanged were the forecasts for 2012, calling
for growth of 3.5% in the U.S. and 2.9% in the Eurozone.
The assumed euro-dollar rate for the short and long term was raised
to $1.30 from $1.25 in June. Oil is now seen at $74 per barrel in the
short term, up from $72. The long-term oil price was unrevised at $83.
Reflecting the appreciation of the Swiss franc, the short-term oil
price for domestic importers was revised down to CHF74 from CHF81. The
long-term franc price was revised down to CHF83 from CHF93.
[TOPICS: M$$EC$,M$X$$$]
