SNB to maintain a dovish tone on Thursday - HSBC

In the view of the analysts at HSBC bank offer a sneak peek at what to expect from the Swiss National Bank (SNB) monetary policy decision due later this week.

The SNB is due to announce its quarterly monetary policy assessment on Thursday.

Key Quotes:

“Swiss National Bank to keep its policy rates on hold sight deposit rate at -0.75% and 3-month Libor target range at -1.25%/-0.25%, as it has been since January 2015. 

Swiss GDP surprised on the downside in Q3, falling by 0.2% q-o-q instead of the gain of 0.4% expected by consensus. 

A sharp drop in exports was the main factor to blame, suggesting that the Swiss economy is starting to be impacted by global trade tensions. Besides, after having reached a peak of 1.2% y-o-y in July and August, inflation dropped to 0.9% in November on the back of a slower rise in imported products. 

Against that backdrop, we expect that the SNB will maintain a dovish tone. This view is backed by the latest speeches from Governing Board members, which suggest that the Bank is still viewing the franc as 'highly valued'.”