• 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%