Andréa M Maechler: Introductory remarks, Swiss National Bank news conference

Introductory remarks by Ms Andréa M Maechler, Member of the Governing Board of the Swiss National Bank, at the Media News Conference of the Swiss National Bank, Berne, 12 December 2019.

The views expressed in this speech are those of the speaker and not the view of the BIS.

I would like to begin by reviewing developments on the global financial markets, paying special attention to the situation on the Swiss franc money market. I will also brief you on how preparations to replace Libor are progressing. After this, I will address the importance of climate risks for the SNB's investment policy. I will close with a few remarks about the SNB's involvement in the new Innovation Hub being set up by the Bank for International Settlements.

Situation on the financial markets

Economic concerns and political uncertainty have shaped developments on the global financial and foreign exchange markets in recent months. For instance, the tug of war in the US-China trade dispute weighed on investors' risk sentiment, especially in the third quarter. Interest rates declined significantly around the world during this phase. Yield curves flattened markedly. In some countries, long-term interest rates even dropped below the level of short-term rates. The yield on ten-year Confederation bonds fell to a historic low of −1.1% in August (cf. chart 1).