Chatter of potential Swiss National Bank intervention in the franc continues
Mike had a piece on this earlier: Talking of intervention have we just seen the SNB back in ?
Bloomberg had an article up over the weekend. In brief:
- Global growth concerns and an equity rout could increase pressure
- Also have to contend with European Central Bank maybe adding more stimulus in March ... potentially weakening the euro versus the Swiss franc
- A majority of economists in Bloomberg's monthly survey said the SNB may need to cut rates further below zero or intervene more heavily if the ECB acts
But, says Maxime Botteron, an economist at Credit Suisse Group AG in Zurich, the trigger for action would be a surge in the franc:
- "The reaction of the SNB will probably depend on the reaction of the exchange rate
- The most likely response to more ECB easing "is through foreign exchange interventions. However, we would not rule out an interest rate cut if the franc were to appreciate sharply."
Bloomberg (h/t LiveSquawk)
