28 Apr 2015
SNB unlikely to cut rates anytime soon – RBS
FXStreet (Barcelona) - The Research Team at RBS, expects SNB to maintain rates steady against market expectations for easing.
Key Quotes
“Markets still expect SNB to cut rates by another 25bp into Q3. Sep’15 Euroswiss future trade with an implied yield of -93bp versus the repo rate at -75bp."
“We believe that the SNB is unlikely to cut rates anytime soon, and last week’s move to reduce exemptions on negative interest rates shows where the current policy bias lies. It does not necessarily exclude further cuts to the repo rate since there are very few options left on the table.”
“We suspect easing anticipations will get priced out with a successful conclusion to the Greek bailout negotiations.”
Key Quotes
“Markets still expect SNB to cut rates by another 25bp into Q3. Sep’15 Euroswiss future trade with an implied yield of -93bp versus the repo rate at -75bp."
“We believe that the SNB is unlikely to cut rates anytime soon, and last week’s move to reduce exemptions on negative interest rates shows where the current policy bias lies. It does not necessarily exclude further cuts to the repo rate since there are very few options left on the table.”
“We suspect easing anticipations will get priced out with a successful conclusion to the Greek bailout negotiations.”