"Swiss franc ceiling means lower interest rates"

The Swiss central bank ceiling set on the value of its currency against the euro will result in lower interest rates for loans tied to the Swiss franc.

Izvor: Tanjug

Wednesday, 07.09.2011.

15:46

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The Swiss central bank ceiling set on the value of its currency against the euro will result in lower interest rates for loans tied to the Swiss franc. This is according to professor at the Belgrade Faculty of Economics Nikola Fabris. "Swiss franc ceiling means lower interest rates" “This measure is good for all those (in Serbia) whose loans are tied to the Swiss franc since it means that the interest rates will be somewhat lower in the upcoming period,” Fabris said in a statement for Tanjug. According to him, the decision of the Swiss National Bank does not mean that the franc-euro exchange rate is fixed, but rather that the upper limit of the exchange rate has been set at 1.20 francs for one euro. Fabris explained that the so-far exchange rate has seriously jeopardized the competence of the Swiss economy since the Swiss export products became too expensive in the world market and a serious recession was lying in wait. “Therefore, the Swiss National Bank had to react to prevent further excessive strengthening of the Swiss franc's exchange rate,” he noted. (Beta/AP)

"Swiss franc ceiling means lower interest rates"

“This measure is good for all those (in Serbia) whose loans are tied to the Swiss franc since it means that the interest rates will be somewhat lower in the upcoming period,” Fabris said in a statement for Tanjug.

According to him, the decision of the Swiss National Bank does not mean that the franc-euro exchange rate is fixed, but rather that the upper limit of the exchange rate has been set at 1.20 francs for one euro.

Fabris explained that the so-far exchange rate has seriously jeopardized the competence of the Swiss economy since the Swiss export products became too expensive in the world market and a serious recession was lying in wait.

“Therefore, the Swiss National Bank had to react to prevent further excessive strengthening of the Swiss franc's exchange rate,” he noted.

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