UBS study: negative interest rates are judged to be harmful

The Economists of the big Bank UBS to remain for the economic growth in Switzerland is relatively pessimistic. The gross domestic product (GDP) will rise in the current year by 0.7 per cent and next year by 0.9 percent, say it in a message from Thursday.

The big Bank thus confirms its forecasts in September, as they had lowered their forecasts sharply. The UBS Economists are with your values, more pessimistic than many professional colleagues. So, most of the forecasters for the coming year, expect to see a GDP growth of about 1 percent.

The political risks pushing the world economy to the brink of a recession, it means to justification. And the Outlook for the Swiss economy a dim in front of this Background. In this country a robust labour market will help, however, a recession apply. This was but at the same time too weak to a rapid recovery of the economic on the trail.

"SNB will follow"

Also for the entire world economy, UBS Economists do not expect a recession. The Central banks would prevent, you mean. You expect, specifically, that the European Central Bank (ECB) in the next year, interest rates once again.

And then will tighten the Swiss national Bank (SNB), to an appreciation of the Swiss franc to counteract. It was, therefore, expected in the next twelve months, with a Euro-franc exchange rate of 1.10 to.

chief economist: "That is remarkable"

According to a survey, which allowed to perform the UBS at 2500 entrepreneurs and executives, is evaluated the effect of negative interest rates in Switzerland, the majority of today, however, as a negative.

"it is Noteworthy that even the majority of the companies evaluated, with an export share of more than 50 percent of the negative interest rates as overall harmful," is Daniel kalt, chief economist UBS Switzerland, in the message quote. (fal/sda)

Created: 07.11.2019, 10:13 PM