Switzerland Was Right to Scrap Its Franc Cap, Economists Say
- Central bank gave up cap in January 2015, risking recession
- SNB can expand balance sheet to 120% of GDP with interventions
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The Swiss National Bank’s surprise decision a year ago to remove its ceiling on the franc was justified, according to the vast majority of economists in Bloomberg’s monthly survey.
The SNB abandoned the cap on Jan. 15 of last year, saying interventions to sustain it would have been out of proportion to its economic advantages. With the benefit of 12 months of hindsight, all but two of 23 economists answered that the move was indeed right.