SNB Preview: Steady as she goes - Nomura

When there are 32 Swiss National Bank (SNB) quarterly meetings that result in no action it is hard to get excited about yet another, according to the analysts at Nomura.

Key Quotes

“With the ECB not materially changing its stance towards tapering at last week’s meeting the SNB is unlikely take the risk of sounding hawkish when euro to Swiss rates spreads remain low, continuing to provide appreciation pressures on the currency. The outlook for mid-term inflation is unlikely to be revised materially higher, even though recent positive inflation surprises may lead to the 2017 inflation forecast being shifted higher. EUR/CHF remains detached from where rates spreads imply it should be as flows point to continued appreciation pressures. However, if ECB normalisation continues as we expect, it should see the pair turn higher back to 1.10.”