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Swiss central bank likely to keep resisting a stronger franc

Despite renewed appetite for risk recently, the Swiss franc has continued to rise against most currencies. This might reflect a view that Switzerland’s central bank will refrain from intervening in the foreign exchange market after the country was placed on the US Treasury’s Monitoring List earlier this week. That said, we doubt that Swiss policymakers will want the franc to keep rising much, and expect them to cut rates in 2020 in order to reduce the risk of deflation.

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