Analysts at Credit Suisse believe that the encouraging growth prospects and the absence of inflations will allow the Swiss National Bank to continue keeping its interest rate low. The specialists think that the chances of regulatory action will increase in case economic conditions in the country deteriorate.

As a result, according to Credit Suisse, franc won’t appreciate too much the next year. Swiss currency is already significantly overvalued versus euro and dollar. In a year the pair EUR/CHF will trade at 1.35, while the pair USD/CHF will be seen at 0.9600.

As the interest-rate differentials will likely remain stable during 2011, franc’s rate is going to be determined primarily by the risk sentiment and specific risk premium on euro. In the next few months, the single currency’s expected to trade versus its Swiss counterpart in the 1.30/40 area.



Chart. Daily EUR/CHF