Danske Research discusses its expectations for this week's SBN policy meeting.
"In the aftermath of ECB’s policy shift last week, the Swiss National Bank (SNB) will hold its quarterly policy meeting this Thursday. In light of SNB’s apparent CHF selling since its last meeting and Thursday’s ECB rate cut it may seem natural to expect a Swiss rate cut," Danske notes.
"However, in light of the significant repricing of Swiss money-market rates following the rise in short-end euro-zone rates on the back of ECB tiering details and a EUR/CHF that is largely back at pre-ECB levels, we think the SNB will try to ‘get away’ with keeping policy rates unchanged at the current -0.75%. This could weigh temporarily on EUR/CHF," Danske adds.