2012.06.07 10:44:10 MARKET TALK: SNB Reserves in May Higher Than Expected - ING

0844 GMT [Dow Jones] The Swiss National Bank's reserves in May are higher than expected, which shows that doubts about the EUR/CHF floor's credibility are emerging and that pressure is increasing on the Swiss central bank. "However, for the moment, there is no reason to believe that the floor could be broken, even under higher pressure," notes ING economist Julien Manceaux. "Indeed, technically, the only limit to the money the SNB can print to ensure its floor are inflation threats, which usually emerge when a central bank is not able anymore to sterilize its FX purchases," he adds. "However, the francs printed are barely inflationary, as most of them don't circulate in the Swiss economy but are stocked as safe-haven reserves," he points out. EUR/CHF currently trades at 1.2011.(neil.maclucas@dowjones.com) Contact us in London. +44-20-7842-9464 Markettalk.eu@dowjones.com (END) Dow Jones Newswires June 07, 2012 04:44 ET (08:44 GMT)