Chief Analyst at Danske Bank Jakob Christensen sees the SNB keeping its monetary stance unchanged at its upcoming meeting. Key Quotes “A speech from SNB's Jordan yesterday regarding the impact of negative rates in fact suggests to us that the SNB remains reluctant to cut rates further even if ECB goes for more: while negative rates have been necessary in a range of countries in order to fight deflation and, in the Swiss case, to restore the required negative interest-rate differential to the eurozone, Jordan stressed that there are limits as to how low rates can go without negative consequences and that the transmission to the non-financial private sector has been far from perfect”. “We maintain that despite the aggressive pricing on SNB (25bp rate cut priced in 3-6M) that SNB will stay put if we are right in ECB going for a mere 10bp in March”. “This would clearly send EUR/CHF lower but provided EUR/CHF stays above, say, 1.075, we think SNB will prefer to stick to intervention to go against the resulting CHF appreciation pressure and not cut rates in March”. For more information, read our latest forex news.