Strong franc, negative interest rates expected to stay

The Swiss economy will continue to be plagued by an over-valued franc and negative interest rates for the whole of next year, according predictions released by Credit Suisse bank economists. The silver lining to this forecast is that Swiss companies will continue to adapt, easing pressure on the Swiss National Bank (SNB) to intervene on the foreign exchange markets, Credit Suisse said on Wednesday. The bank expects the Swiss economy to grow 1.5% next year. Switzerland’s central bank set interest rates at -0.75% in January 2015 as it abandoned its defence of the Swiss franc against the plummeting euro. The move to discourage foreign investors from buying Swiss francs has hurt Swiss pension schemes and artificially stimulated the property market. The SNB will make its next monetary policy statement on Thursday. A poll of 34 analysts by Reuters said they expect rates to remain as they are. Credit Suisse expects the SNB to stick with the current interest rates for the ...