Switzerland economic expectations strengthen for sixth straight month

Survey data from the Credit Suisse and the CFA Society Switzerland showed Wednesday that Switzerland economic expectations strengthened for a sixth straight month. Data showed that the index reflecting economic expectations for the next six months rose to 19.4 points from 18.5 points in January, marking its highest level since June 2016.

The current economic situation index dropped to 20 points from 25.9 points but remained relatively positive. Just over 64 percent of survey participants expected Swiss inflation to rise over the next six months. Majority of survey participants do not expect any change in the current growth dynamic with regards to the Eurozone and the United States.

Meanwhile, the proportion of participants expecting CHF appreciation against the EUR rose to 45.2 percent from 26.9 percent. That was the highest ratio since December 2010. Survey participants also judged that the fair value of EUR/CHF is most likely somewhere between 1.00 and 1.20, broadly unchanged from November.

A majority of survey participants do not expect the shortterm interest rate to fall, thus suggesting that they do not expect the Swiss National Bank to lower its policy rate deeper into negative territory to prevent the CHF from appreciating further.