Switzerland’s central bank will keep its cap on the franc into 2017 to ward off the effects of the European Central Bank’s unconventional measures, according to Bloomberg News’s monthly survey of economists.
More than half of respondents say the SNB won’t remove its ceiling on the franc of 1.20 per euro until that year or later. Just 3 of 18 expect an exit next year.
The franc hit a 26-month high versus the euro this week as investors bet the ECB will enact still more stimulus to shore up inflation. President Mario Draghi has said the central bank is ready to do more if needed and this week explicitly cited government-bond buying as a policy tool officials could use. The SNB set the 1.20 limit three years ago after the franc nearly shot to parity with the euro amid Europe’s sovereign debt crisis.
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