Economists at ING analyze EUR/CHF outlook ahead of the SNB decision on Thursday.
SNB to stay on hold
We anticipate the Swiss National Bank (SNB) will maintain its current policy stance, despite recent speculation about a potential rate cut this month. However, we believe it’s more probable that the SNB will opt to wait until its next meeting in June before considering any policy easing. This approach allows for a few more months to gather evidence indicating stabilization in inflation trends. Additionally, June aligns with expectations for an ECB rate cut.
While EUR/CHF may experience downward pressure this week as markets price out the implied tightening of 7 bps for this meeting, we anticipate the currency pair will encounter robust support around the 0.9600 level.
