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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.
MNI BRIEF: SNB Confirm Loan Facility As UBS Buys Credit Suisse
MNI SNB WATCH: 50BP As Inflation Fears Override CS Collapse
Executive Summary:
- Bank reinstated the Eurozone-Swiss rate differential, with a 50bps hike
- Inflation clearly remains the priority, despite turmoil in local banks
- CPI forecasts bumped higher across forecast horizon
Full review including summary of sell-side views here:
The Swiss National Bank looked through the local banking crisis to raise rates by a further 50bps at the March quarterly meeting. Despite wavering pricing headed into the meeting, the decision confirms that inflation remains the distinct priority, with near-term uncertainty surrounding financial stability seen as tangential to monetary policy. The baseline now looks for a further 25bps hike in June, bringing rates to a possible cycle peak of 1.75%.
The distinct priority for policy was made clear in both the policy statement as well as the subsequent press conference, as Jordan clarified that “not hiking rates was not on the table for us”, that the rate hike “will not have a negative impact” and that their liquidity provision measures have “put a halt to the Credit Suisse crisis”. This confirms that persistent uncertainty for the domestic banking sector will be tolerated, and the bank can tighten financial conditions further via their balance sheet tools ahead of the June meeting.
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.
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