Out few moments ago. SNB financial stability report ahead of the interest rate decision and presser later this morning
- overall economic and financial stability conditions for Swiss banking system have improved but substantial risks remain
- rate shock could be major challenge to financial stability, cause bigger losses than euro crisis
- prlonged period of low rates carries risks, could lead to new imbalances
- current situation calls for prudent lending policy
- welcomes banks’ efforts to boost transparency
- UBS and Credit Suisse should boost leverage ratios further
USDCHF 0.8960 ahead of the main event with SNB highly unlikely to act today. Will post some more thoughts later
Full (32 page) report here
