Free Trial

Morgan Stanley: Continues to see SNB following ECB

SNB
  • In a stark contrast to consensus expectations, SNB raised its policy rate 50bp, to -0.25%; the first rate hike since 2007.
  • Not only did it hike rates and signal more rate hikes to come, but it also removed the reference to the CHF being “highly valued” and now says it sees currency interventions as two-sided. It said it would intervene against both excessive appreciation and CHF weakness, a stark departure from its long-standing battle against CHF strength.
  • We continue to think the SNB following the ECB on policy normalisation will keep money supply differentials (a key driver of EUR/CHF) contained.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.