SNB keep headline policy rates unchanged -......>

SNB: SNB keep headline policy rates unchanged - broadly inline with expectations

although there were outside expectations of easing as soon as today's meeting.

- On FX, the bank up their language surrounding the CHF, stating that the

currency is "even more highly valued" adding that they have stepped up their FX

market interventions. Again, this is no surprise given the recent uptick in

weekly sight deposits data we've seen since the end of January.

- Some policy action the bank have taken include raising the exemption threshold

factor on banks to 30 from 25 and they do hint that they are examining relaxing

countercyclical capital buffers. No change to this had been expected today given

the bank's comments last week that the Swiss banking sector has ample liquidity

provisions.

- Downgrades to growth forecasts look inevitable, with the Bank stating that

Swiss GDP is likely negative for this full year.

- EUR/CHF better bid on the announcement, but still well within the day's range.

1.0575 last.