Societe Generale notes the Swiss Franc's role as a funding currency, projecting gradual depreciation punctuated by market-driven rebounds as the SNB holds rates steady amid low inflation.
Societe Generale highlights the Swiss Franc's funding currency role with gradual depreciation interrupted by safe-haven rebounds, while subdued inflation reduces pressure on the SNB to raise rates.
Societe Generale strategist Kit Juckes identifies the Swiss Franc as a primary funding currency prone to periodic safe-haven spikes. Subdued domestic inflation and stable fiscal balances suggest the Swiss National Bank faces minimal pressure to tighten monetary policy in the near term.
The currency's role as a funding vehicle is supported by stable fiscal balances and low domestic inflation, which keeps interest rate expectations muted.