Lower Economic Expectations
ZEW-CS Financial Market Test Switzerland
This is revealed by the current Financial Market Test Switzerland, carried out monthly by the Centre for European Economic Research (ZEW) in cooperation with Credit Suisse
The indicator for the assessment of the current economic situation in Switzerland also declined, dipping by 8.5 points to the 4.8 level, but still wavering in positive territory for the second consecutive month.
In the wake of the pickup in the previous month, inflation expectations diminished again in May. But overall, the share of respondents who expect prices to decrease remained rather modest at 9.5 percent (up 5.1 percentage points). With 61.9 percent the majority of financial experts continue to forecast a constant inflation rate.
88.1 percent of questioned analysts predict that interest rate levels will hold steady. Merely 11.9 percent of the survey participants believe that shortterm rates will rise on a sixmonth horizon.
More detailed results - including survey participants' assessment of developments in other countries - can be found in this month's edition of the "Switzerland Financial market report" (please note that the URL is case sensitive):