UBS expects a 25bp rate rise from the SNB

Never underestimate the Swiss National Bank, says UBS.

Going out on a bit of a limb, the bank’s analysts are predicting the SNB may deliver as much as a 25bp hike this week, while all other forecasts are predicting no change.

Their view is largely based on the notion that the strength of the Swiss franc may have distracted attention from the economic fundamentals, which according to the analysts are pointing to a surprising turnaround in the Swiss economy.

http://ftalphaville.ft.com/blog/201...25bp-rate-rise-from-the-snb/?updatedcontent=1

Amazing. This is the most stupid suggestion from UBS for a long while. The strength of the Swiss Franc acts as almost a full percentage point and these guys are dreaming of a hike ?

 

Yeah, the SNB is probably more likely to ease than tighten money policy at this point.