Economics
SNB Still Has Currency Firepower to Fight ECB Policy Fallout
- Balance sheet could hit 120% of Swiss annual output: survey
- Franc interventions have pushed assets to ~95% of GDP
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The Swiss National Bank has room to restart major currency purchases if needed to weaken the franc before its credibility starts to suffer, according to economists in a Bloomberg survey.
Switzerland is bracing for more European Central Bank stimulus, which could push the euro lower. Having already spent hundreds of billions of francs on interventions, that has analysts asking how much more ammunition the SNB has and how willing it is to take greater financial risks.