By eFXdata — Mar 08 - 01:30 PM
Danske Research discusses CHF outlook and its expectations for this month SNB's policy meeting.
"Yesterday, the Swiss National Banks (SNB) Governor Jordan reiterated that monetary policy was still too loose and that the need for further tightening could not be excluded. With headline and core inflation showing no signs of easing and Jordan not closing the door for another significant policy rate increase, we now expect the SNB to increase its policy rate by 50bp (up from 25bp) at its meeting on 23 March," Danske notes.
"Likewise we maintain our view of a cap in EUR/CHF of around 1.00 given continuous intervention by the SNB to limit significant depreciation of the Swiss Franc," Danske adds.
Danske Research/Market Commentary