Ahead of the March 23 decision, UBS write that the market's focus will be on rates, the updated inflation forecast and any comments around the balance sheet.
They look for a 50bps step in March, but cannot exclude a 75bps move given the surprise in June last year.
They also add 25bps to their terminal rate view, seeing 1.75% in June (with a risk of 2.00%) due to the increased expectations for ECB policy and the implied ECB-SNB rate differential.
On the balance sheet, they write that they expect FX interventions to be increasingly be used after an estimated CHF30bln in sales across Q4 and CHF 8bln across January.
Lastly, they see SNB tweaking their tiering framework by increasing remuneration of sight deposits above the threshold to 1.00% from 0.50%.

MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

Homepage markets-real-time Bullet Markets Fixed Income News Foreign Exchange News Swiss National Bank Market News

Edward Hardy

MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

Homepage markets-real-time Bullet Markets Fixed Income News Foreign Exchange News Swiss National Bank Market News

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