Swiss Franc's Weakness Could Extend Further if SNB Keeps Rates Steady

Dow Jones
Jul 29

1119 GMT - The Swiss franc could fall further as subdued inflationary pressures should prevent the Swiss National Bank from raising interest rates, Commerzbank's Michael Pfister says in a note. The SNB is likely to keep rates unchanged until the end of 2027, but the market continues to price in the chance of a rate rise, he says. "As our model suggests that imported inflationary pressure is moderate, the interest rate differential between the euro-area and Switzerland is likely to persist for some time." This should support the euro versus the franc over the medium term, he says. The euro rises to a six-and-a-half-month high of 0.9344 francs, LSEG data show.

 

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