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19 Mar 2015
Expecting less for the SNB - ING
FXStreet (Guatemala) - In respect of the SNB, Julien Manceaux, analyst at ING Bank, we expect FX interventions to remain limited in 2015.
Key Quotes:
"On the interest rate front, further actions cannot be excluded: with short-term euro rates becoming more and more negative, the spread between euro and Swiss rates decreased again."
"So far, this did not erase the significant SNB move: for this to be the case, 3m Euribor would have to reach -50bp, far below the ECB’s deposit rate of -20bp. For the moment, another rate cut from the SNB therefore appears unlikely."
"However, if 3m Euribor was to be pushed too low, another 25bp cut might well be on the cards for the second half of 2015. The SNB could also lower the deposit amount which is exempted from negative rates at some point this year, but a rate cut remains a possibility later this year if euro rates keep plunging."
Key Quotes:
"On the interest rate front, further actions cannot be excluded: with short-term euro rates becoming more and more negative, the spread between euro and Swiss rates decreased again."
"So far, this did not erase the significant SNB move: for this to be the case, 3m Euribor would have to reach -50bp, far below the ECB’s deposit rate of -20bp. For the moment, another rate cut from the SNB therefore appears unlikely."
"However, if 3m Euribor was to be pushed too low, another 25bp cut might well be on the cards for the second half of 2015. The SNB could also lower the deposit amount which is exempted from negative rates at some point this year, but a rate cut remains a possibility later this year if euro rates keep plunging."