SNB preview: More of the same – Nomura

Analysts at Nomura suggest that it is hard to get overly excited for an SNB meeting; policy has not changed at a quarterly meeting for many years now.

Key Quotes

“The ECB’s new forward guidance on rates means that the SNB is unlikely to move policy any time soon, with 2020 the most likely timing, in our opinion. Near-term CPI forecasts could be revised higher, but the recent market developments on balance could see a softer growth outlook and revisions lower in the long term.”

“ECB dovishness, Italian politics and a softening in global growth indicators would advise caution from the SNB. The commitment to the two pillars of low interest rates and the willingness to intervene in the FX market should remain. Given the SNB will be one of the last movers in normalising monetary policy, the risk-reward remains to trade EUR/CHF to the topside unless a broad-based market risk-off materialises again.”