UBS Outlook Switzerland: Switzerland at parity

UBS economists lowered their growth forecast for the Swiss economy this year from 1.8% to 0.5% after the EURCHF exchange rate floor was abandoned. UBS expects the Swiss franc to fall slightly against the euro in the next 12 months and fluctuate around the 1.05 mark. As long as the franc remains significantly overvalued, however, the Swiss National Bank will keep interest rates negative.