The SNB meet on December 14 2018
Via HSBC:
Swiss National Bank to keep its policy rates on hold
- sight deposit rate at -0.75%
- 3-month Libor target range at -1.25%/-0.25%
as it has been since January 2015.
Swiss GDP surprised on the downside in Q3, falling by 0.2% q-o-q instead of the gain of 0.4% expected by consensus.
- A sharp drop in exports was the main factor to blame, suggesting that the Swiss economy is starting to be impacted by global trade tensions. Besides, after having reached a peak of 1.2% y-o-y in July and August, inflation dropped to 0.9% in November on the back of a slower rise in imported products.
Against that backdrop, we expect that the SNB will maintain a dovish tone. This view is backed by the latest speeches from Governing Board members, which suggest that the Bank is still viewing the franc as 'highly valued'.
