An unchanged decision is the most likely outcome, keeping the policy rate at 0.00% this Thursday
SNB rhetoric over the last few months has prompted a paring of tightening expectations, raising the bar for a dovish surprise at the meeting
Market focus will be on any change to FX communications from the recent “increased willingness to intervene”, as CHF trades at YTD lows on a trade-weighted basis
The end-of-horizon inflation forecast will indicate any update to the balance of risks between CHF valuations and energy prices over the medium term
Schlegel’s opening remarks and later Q&A may then contain more comments on the monetary policy outlook, but the bank is likely to stick to its meeting-by-meeting approach to preserve optionality