Expect macro-prudential measures to remain the norm
The increase in the Swiss countercyclical-buffer (CCB) today led to strong interest in the CHF due to a hawkish interpretation – i.e. tightening or a deleveraging incentive. Regardless of the motivation behind the price action, this move represents the latest step by ‘AAA’ economies (we include New Zealand too) to rein in property markets and household debt through macro-prudential measures (MPM). The reluctance to hike rates is still palpable, and markets should continue to get this message.
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