This morning the Swiss Consumer Price Index came out in line with the analysts’ expectations (0.1% vs 0.2% expected MoM and -0.4% vs -0.4% expected YoY). The figure is, in absolute value, very low and comparatively, it is located in the average of what we experienced since 2010. This does confirm what we explained with the Foreign Currency Reserves, which was the highest number ever for the SNB.
"The monthly data on the labor market is an important indicator. We will continue to follow the trend of the labor market carefully," Yellen said, stressing that the current level of monetary policy is "appropriate to support the economy and encourage further improvements in the labor market, which will help inflation return to the 2% ".
"I still believe that rates will rise gradually over time to ensure price stability and maximum sustainable employment in the long term", Yellen highlights . "I believe that the positive forces that sustain employment growth and inflation will continue to weigh more than the negative ones. I expect the continuous economic expansion, with the labor market still improve and that GDP will grow."
Interest rates will remain at current levels or lower for an extended period and the quantitative easing program will last at least until March 2017. This was stated by President of the ECB Mario Draghi stating that the Q and will last as long as there will be a correction significant inflation and that stimuli have rebalanced the risks and the economy is gradually advancing.
The ECB, Draghi added, will not hesitate to act if necessary. And it recalled that the low rates are a symptom of a weak economy and that they are the right fit for restoring growth. In addition, the ECB will use all the instruments available within the framework of its mandate if necessary.
It had been known for months and yesterday the Bank of England has officially unveiled the design of the new 5-pounds banknotes that will come into circulation from September 13.
On one side appears the irreplaceable face of Queen Elizabeth, and on the other that of the statesman Winston Churchill, selected to replace Elizabeth Fry, nineteenth-century reform of the penitentiary system in the United Kingdom.
According to market expectations, the European Central Bank left interest rates unchanged at the end of the Monetary Policy Council. The main rate remains stuck at a record low of 0.00%, the rate on bank deposits to -0.40% and the marginal lending facility at 0.25%. The ECB announced after the meeting that was held in Vienna.
The plan of the corporate bond purchases ECB will start on June 8 and June 22 will be the turn of the maxi-Tltro loans to banks.
The Parliament in Athens approved a new package of austerity measures demanded by international lenders in return for a new tranche of aid before the Eurogroup meeting to be held Tuesday. In the specific case 152 Greek MPs approved a VAT increase, new direct taxes and measures to accelerate privatization. The new measures also provide for an automatic correction mechanism of the accounts should be rejected if the goal of bringing the primary surplus at 3.5% in 2018.
"The Greeks have assumed their responsibilities. Tomorrow also the counterparty will have to do the same," he said confident the Greek prime minister, Alexis Tsipras, after the vote in Parliament.
The agency Standard & Poor’s confirmed the triple "A" for the debt of Switzerland. In a note, they are praised the capabilities of the Swiss economy, called "competitive and diversified". Confidence by the American Society of rating, is also expressed with regard to the Swiss National Bank, after about a year and a half after the decision to abolish the minimum exchange rate between euro and franc.
Fear for Brexit widens the employment world. After the spectrum to the recession of the past few days, the Chancellor of the Exchequer, George Osborne, has been focusing on the world of work: in fact, according to the report issued by its Ministry of the Treasury, the exit of Britain from the EU could cost 820 thousand jobs in two years, following the sharp slowdown of the economy.
