The failure of U.K. Prime Minister Theresa May to get parliamentary support for her Brexit plan inevitably leads to a increased sense of uncertainty in the markets. This and the scenario of a chaotic Brexit worries the Swiss central bank.
A chaotic exit of the U.K. from the European Union – a scenario that is not off the table despite efforts by moderate MPs from government and opposition – may lead to sudden changes on the markets and may also affect the Swiss franc, said Thomas Jordan, head of the Swiss central bank, in a speech on Wednesday.
Jordan said that a well-prepared and negotiated exit would probably lead to less volatility, according to «awp», a Swiss news agency.
No Early Interest Rate Steps
The Swiss National Bank so far has refrained from raising interest rates, going against opinions voiced by several experienced economists that it was high time to start moving away from the negative rate regime.
Jordan confirmed his intention not to act too swiftly, because this might create problems in turn. For instance, if the step would have to be reversed.
