The Swiss Franc (CHF) has been correcting lower at the start of the year. Economists at Scotiabank analyze CHF outlook.
CHF may underperform as inflation cools
The CHF may underperform moderately this year.
We expect some gains in EUR/CHF over the course of 2024, reflecting some easing in the Swiss National Bank’s already low 1.75% policy rate and a modest correction in the CHF’s somewhat overvalued status.
The central bank has also decided to stop leveraging a firm exchange rate as a tool to help battle domestic prices now that inflation is slowly converging with the central bank’s 2% target.
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