As The Global Economic Outlook Improves, GDP Growth In Switzerland Will Also Accelerate.

The Swiss central bank (SNB) has stressed this year that it is unhappy with the appreciation of the Swiss franc.

After the easing policy was introduced by the ECB in December 3rd, the Swiss Franc increased slightly, and the SNB intervened immediately to weaken the Swiss franc, making it clear to the market that the bank hoped that the Swiss Franc would depreciate.

It is expected that in 2016, the SNB will remain the "ecstatic worm" of the European Central Bank.

The Swiss central bank has pointed out that to weaken the pressure on the Swiss franc, the SNB needs to implement negative interest rates and show its willingness to intervene in the foreign exchange market.

The market predicts that the Swiss bank will continue to play an active role in the foreign exchange market if necessary.

At its meeting in December 10th, the SNB decided to continue to maintain a relaxed monetary policy unchanged: Switzerland's three month Swiss Franc Libor interest rate target remained unchanged at -1.25% to -0.25%, while interest rate for demand deposits remained unchanged at -0.75.

In addition, the SNB also said that in order to ensure economic growth, there will be regular monitoring.

And the real estate market, it is necessary to assess the necessity of adjusting the counter cyclical capital buffering.

Switzerland is surrounded by euro zone countries, so the Swiss central bank is wise to keep up with the European central bank when formulating policies.

The Swiss central bank has been doing this before, so when the stimulus measures launched by the European Central Bank are less than market expectations, the vast majority of the market is also expected that the SNB will not take action.

The Swiss central bank's omission at the December 10th monetary policy conference also confirmed market expectations.

It is expected that this situation will not change much in the coming months.

Analysts at Holland International Group (ING) also rightly observed that in the near future, if the European Central Bank further expands its current stimulus policy, the pressure on the Swiss Franc will increase.

In addition, the euro zone's economic crisis may also lead to a significant depreciation of the euro, which in turn will lead to increased demand for the safe haven currency, the Swiss franc.

By then, the SNB will have to cut interest rates again to intervene and control the exchange rate.

Mario Draghi, the European central bank governor, also assured the market after the December monetary policy meeting that the European Central Bank will increase its use of easing policy tools to push inflation up to its target level.

The European Central Bank has also made it clear that it can and will further relax its policies to stabilize prices.

This means that the eurozone interest rate will face downward pressure for a long time, so the market predicts that the SNB can only start the normalization process of monetary policy in 2017.

Like many other major economies, Switzerland is also beset with low inflation. And since the Swiss central bank lifted the exchange rate restrictions on the Swiss Franc in January this year, the upward drag on inflation has increased.

In addition, Swiss manufacturing activities also shrank. The latest data show that Switzerland's SVME purchasing managers' index (PMI) decreased from 50.7 in October to 49.7 in November, and that in Switzerland in November, the annual retail sales fell by 0.8%, which was also a drag on inflation.

According to the latest data, Switzerland's inflation rate in November was -1.4%, which is far from the responsibility of deflation.

However, the recent short-term inflation outlook in Switzerland has improved due to the positive impact of the weakening of the Swiss Franc exchange rate.

The Swiss central bank predicted December 10th inflation rate will rise to -0.5% in 2016, which is consistent with previous estimates. It is expected that inflation will continue to rise to 0.3% in 2017 (0.4% before forecast), and the inflation rate is expected to rise by 1% in the middle of 2018.

Data released in December 1st showed that economic growth in the third quarter was stagnant in Switzerland.

Specific data show that Switzerland's third quarter GDP quarter rate was flat, less than the expected value and the previous value (both rose by 0.2%); the third quarter of the third quarter of Switzerland increased by 0.8%, the increase was in line with expectations, but less than the previous value of 1.2%.

However, the SNB expects its economic growth to rise to 1.5% in 2016.