SNB to leave all policy settings unchanged - TDS

Analysts at TDS expect the Swiss National Bank to retain its cautious tone and leave all policy settings unchanged.

Key Quotes

“We think the SNB will retain its FX intervention mandate, but note that the CHF has depreciated about 2% on a trade-weighted basis since the September policy meeting. At the same time, Swiss inflation has started to show signs of life with core CPI running at its fastest pace in more than six years. In September, the SNB downgraded its assessment that the franc to “highly valued” from its previous concerns it was “significantly overvalued”. While this could encourage policymakers to signal an additional degree of comfort with the currency, we think it is a little early.”