Results of a survey of 23 economists released a little earlier shows that more than 75% of them say the SNB will keep the cap of 1.2000 vs EUR until at least 2016. Not even 10% say it will remove the barrier next year
SNB president Jordan said in July that the cap would remain for the “foreseeable future” and according to the poll 39% of the respondents see an exit in 2016 at the earliest with 44% not expecting a move before 2017.
The SNB has also said that they won’t/can’t raise interest rates as long as the cap is in place and the persistence of weak growth in the Eurozone has prompted economists to progressively delay the moment the SNB exit comes.
The question remains whether they will in fact raise the cap rather than/in addition to defending 1.20, a scenario we’ve discussed in the thread to my post yesterday on SNB intervention levels
EURCHF currently near session lows at 1.2102 having failed to clear the offers above 1.2120
