News & Events

The KOF MPC figure for 18 July 2024 is 0. At today’s meeting, the ECB’s Governing Council decided to keep the three key ECB interest rates unchanged.

After three consecutive increases, the Leading Barometer fell slightly, although it remained above average. The decline in the Coincident Barometer was even smaller. As a result, the indicator remains within the narrow range in which it has been fluctuating since the beginning of the year. Therefore, the slight decline in the Global Barometers in July currently does not mark a turning point.

The semi-annual KOF Investment Survey reveals major sectoral variations in the investment expectations of Swiss firms. Investment planned for the current year is increasing only in the service sector but is stagnating in industry and even decreasing in construction. This decline is being accompanied by lower-risk investment projects and a reduced focus on environmental protection measures.

KOF economists Alexander Rathke and Alexis Perakis analyse the interest-rate decisions taken in the eurozone, the United States and Switzerland. They also comment on the political risks posed by the snap elections called in France.

Despite having very high incomes, the rich and super-rich often pay much lower income tax in percentage terms than middle-income households. In Switzerland, too, the income-tax burden on billionaires is often significantly lower than that on the rest of taxpayers thanks to the privileges enjoyed by business owners. However, wealth tax makes a significant difference here by stepping into the breach when income tax is no longer effective.