Swiss National Bank to keep policy steady - Nomura
Analysts at Nomura are out with a brief preview of the Swiss National Bank’s (SNB) quarterly monetary policy assessment, with the interest rates decision due to be announced at 0730 GMT.
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 normalizing monetary policy, the risk-reward remains to trade EUR/CHF to the topside unless a broad-based market risk-off materializes again.”
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
