SNB: Rates on hold - BBH

Analysts at BBH note that Swiss National Bank kept rates on hold, as widely expected. 

Key Quotes

“The bank noted that the franc’s recent weakness has helped reduce “significant overvaluation,” but added that it nevertheless remains “highly valued” and the situation in the FX market remains “fragile.”  The OECD still regards the Swiss franc as the most over-valued currency in its universe (~23.5%).  Lastly, the bank revised down its 2017 growth forecast to just under 1% from 1.5% previously whilst revising up its 2017-2019 inflation forecasts by 0.1 percentage point each to 0.4%, 0.4%, and 1.1%, respectively.  The SNB seems content to lag well behind the ECB and Fed in the monetary cycle.”