WILL THE FRANC FALL THIS SUMMER? 3/3

The formal signing of the U.S.-Iran peace memorandum has reversed defensive capital flows, leaving the Swiss franc weaker than its pre-conflict benchmarks. This de-escalation has dried up safe-haven demand as regional shipping bottlenecks dissolve. SNB President Martin Schlegel signaled that a moderate inflation rebound to +0.6% is entirely acceptable within their 0% to 2% target range, confirming that policymakers will not rush to alter their accommodative stance. The central bank's focus has decisively shifted away from fighting aggressive disinflation.