- Thomas Jordan, the Swiss National Bank Governor
Retail sales in the Alpine country unexpectedly fell in November, the Federal Statistics Office reported a day after the Swiss National Bank dropped a bombshell by discontinuing its three-year-old cap on the Swiss Franc against the Euro. Swiss retail sales declined by 1.2% in real terms compared with the same period in the preceding year, reversing a 0.6% increase in October. On a monthly basis, retail sales rose by real 0.2% from October, when it climbed by 0.3%. Excluding fuel, sales fell 0.1%, the same rate of decrease as seen in October.
Commenting the SNB's decision, the central bank Governor Thomas Jordan said that it was not a panicked move, but it had to be a surprise to financial markets. Jordan also underscored the central bank's determination to act and impact the Swiss Franc's exchange rate, should the situation justify it. The Governor also added that inflation outlook for Switzerland is lower compared with the December forecast due to falling oil prices globally, which are also expected to stimulate economic developments in Switzerland in a positive manner. The SNB decided to drop the cap, introduced in September 2011 to shield the economy from the Euro zone's debt crisis, as it was no longer "sustainable". The move instantly made Jordan unpopular with Swiss exporters, making their products less competitive abroad and more expensive at a time when many of the country's main trading partners in Europe are already struggling.
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