Author thomas ramseyer
QUOTE
fxstreet: Jean-Pierre Danthine, the Swiss National Bank Vice President has
indicated that the central bank will abolish the ceiling on the franc
when it starts raising interest rates.
http://www.fxstreet.com/analysis/daily-trading-analysis-/2013/08/12/03/
UNQUOTE
Remarks
1) The rate hike will take place when the demand for EUR picks up.
1.1) SNB will be FORCED to buy CHF against selling strongly demanded EUR.
2) Demand for EUR will be based NOT on the recovery of the economies BUT on the Government Debt related to GDP.
3) Selling EUR leads to downsizing the central bank money, monetary aggregates as well as the sight deposits of the domestic banks. This will lead to higher short term rates.
3.1) Thus SNB will follow the market; it will be forced to restate rising short term interest rates.
copyright thomas ramseyer
http://www.xing.com/profile/Thomas_Ramseyer5?sc_o=mxb_p
Also see
Bloomberg
Reuters
