Interest rates

Provided there are no extraordinary political or economic upsets, interest rates will probably remain at very low levels. The central banks in the Asian emerging markets already began to ease their monetary policy in the first quarter of 2019. The Fed reduced its benchmark rate in July, September and October. In doing so, it partly reversed the rate hikes made since the end of 2015. A further easing of rates in the USA is not to be expected in the short term. The ongoing bond purchases and its record low key interest rates show that the European Central Bank (ECB) is continuing with its very expansive monetary policy. Here too, in the view of the experts, no change is to be expected. The Swiss National Bank (SNB) is also showing no sign of raising its key interest rate from the record low level of minus 0.75 per cent. Instead the SNB will continue to intervene on the foreign exchange market to relieve the upward pressure on the value of the Swiss franc.