Inflation

SNB: Swiss franc remains "highly" overvalued

Switzerland’s central bank on Thursday softened its longstanding warning about the strong franc but still said that it was "highly valued, " suggesting Swiss officials aren’t fully satisfied yet with the franc’s weakening against the euro.

"The Swiss franc nevertheless remains highly valued, and the situation on the foreign exchange market is still fragile," the SNB said in a statement after its quarterly policy review.

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SNB: negative interest rates are vital for Switzerland

The Swiss franc’s recent weakening against the euro is a positive development but the trend was “fragile”, Swiss National Bank governing board member Andrea Maechler said on Thursday.

“Overall, the trends are pointing in the right direction for the Swiss franc, but it is too early to say whether these trends are sustainable,” Maechler told an economic conference in Yverdon-Les-Bains.

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Eurozone unemployment falls to lowest since 2009

The eurozone’s unemployment rate has fallen to its lowest level in more than eight years, but the annual rate of inflation is unchanged, new data showed Monday, highlighting the challenge at the heart of the European Central Bank’s decision on dialing down its stimulus programs.

The European Union’s statistics agency said the proportion of workers without jobs across the 19 countries that use the euro fell to 9.1% in June from 9.2% in May, reaching its lowest level since February 2009. But consumer prices were just 1.3% higher in July than a year earlier, as the rate of inflation was unchanged, at its lowest level in 2017.

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