That the strong Swiss franc was hurting the country’s exporters has been well documented.
But an article in the Swiss National Bank’s quarterly bulletin, out today, offers further evidence of why the central bank felt compelled to “go nuclear” and announce a cap on the franc’s appreciation against the euro. Read more
Klaas Knot, the Dutch central banker, has said what eurozone policymakers must be thinking – but dare not say: Greece might have to default. He was not suggesting the country would or should go bankrupt, he reassured Het Financieele Dagblad, the Dutch newspaper. “All efforts are aimed at preventing this, but I am less certain in excluding a bankruptcy that I was a few months ago.”
His comments may not go down well in Frankfurt. The official ECB ”working assumption” is that Greece sticks to its bail-out programme and speculating about other scenarios is seen as unhelpful. But Mr Knot, 44, a newcomer to the ECB’s governing council, is gaining a reputation as a conservative, or “hawk” – and ally of Jens Weidmann, the German Bundesbank’s similarly-youthful president. Both are thought to have opposed the ECB’s bond buying programme.
Their agenda is much broader, however. Read more
Our week ahead email will help you to track the most important events in the central banking world. To see all of our emails and alerts visit www.ft.com/nbe
The majority of the world’s central bank governors and finance ministers are in Washington, DC this weekend for the IMF/ World Bank Annual Meetings.
Will there be any more policy coordination following the G-20 communiqué released late Thursday? Read more