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Analysts at Nomura are out with a brief preview of the Swiss National Bank’s (SNB) quarterly monetary policy assessment, with the interest rates decision due to be announced at 0730 GMT.

Key Quotes:

“The ECB’s new forward guidance on rates means that the SNB is unlikely to move policy any time soon, with 2020 the most likely timing,  in our opinion.

Near-term CPI forecasts could be revised higher,  but the recent market developments on balance could see a softer growth outlook and revisions lower in the long term.

ECB dovishness, Italian politics and a softening in global growth indicators would advise caution from the SNB.

The commitment to the two pillars of low-interest rates and the  willingness to intervene in the FX market should remain.  

Given the SNB will be one of the last movers in normalizing monetary policy, the risk-reward remains to trade EUR/CHF to the topside unless a broad-based market risk-off materializes again.”