- says EURCHF 1.20 cap should stay
IMF comments after their annual Swiss consultation
- negative rates would be on reserves of commercial banks
- recommends SNB make effort to strengthen own capital
- sees risk in Swiss real estate, mortgage sector
- says immigration vote adds uncertainty to mid-term growth
- recommends reducing debt of big Swiss banks further
Nothing in the report that the SNB haven’t already highlighted.
USDCHF 0.8861 EURCHF 1.2197
Add:
- shouldn’t be looking for “magic number” for CHF fair value
- “moderately” over valued means 5-10%