Economics
Swiss to Join Dovish Global Shift as Franc Tightens Grip
- Inflation forecast likely to be cut given franc appreciation
- Bond spread narrowed, market is pricing in more SNB easing
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The Swiss National Bank is again at the mercy of its bigger neighbors and will have to lean in a more dovish direction to keep its currency under control.
With the franc having touched a two-year high against the euro, SNB President Thomas Jordan and fellow policy makers are feeling the pressure from risks such as trade tensions, a German industrial slump, Italian politics and Brexit.