Ernst Baltensperger, an adviser to the Swiss central bank, said that he considers it possible that policy makers will soon increase the franc ceiling versus the euro to 1.25, Tages-Anzeiger reported, citing an interview. “I don’t know any expert who doesn’t consider the franc still overvalued at 1.20 based on fundamental factors,” Baltensperger told the newspaper in the interview published today. “As long as one defines the lower limit at 1.20, the risk for the central bank is comparatively limited but all fundamental data are pointing toward a range of between 1.30 and 1.40.” He also said that while the currency ceiling poses “a high risk,” it would have been “more risky not to do anything.” The Swiss National Bank is able to defend its cap “for as long as it wants,” he said. To contact the reporter on this story: Simone Meier in Zurich at smeier@bloomberg.net To contact the editor responsible for this story: Matthias Wabl at mwabl@bloomberg.net

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