Central Banks
SNB’s Final Rate Hike Risks Ending Franc’s Rally
- Economists expect quarter-point move this week to be the last
- Investors almost doubled short position on franc versus dollar
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The Swiss National Bank will likely conclude its unprecedented campaign of interest-rate hikes with a quarter-point step on Thursday, a move that risks putting an end to the franc’s peer-beating rally.
All but four of 31 economists in a Bloomberg survey expect the key rate to be lifted to 2%, with the remainder forecasting a pause. In anticipation, investors have ramped up bets against the franc, almost doubling their short position against the dollar.