Analysts donot expect SNB rate cut despite strong franc

While the current economic environment is still considered exceptionally weak, the renewed rise in the CS CFA Society Switzerland Indicator for May points to an upswing in summer and fall. Despite deflationary tendencies and the appreciating franc, the analysts do not expect a rate cut in June.

Swiss assets have seen safe-haven inflows during the pandemic-related turmoil on the markets. This has pushed the fair value of the EUR/CHF exchange rate clearly below 1.10 and confirmed the overvaluation of Swiss asset classes including equities, according to the survey participants.

Read the full article (see under Research: Swiss Economy / Financial Market Survey – May 2020 (pdf))  here.

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