Swiss National Bank’s interest rate decision will be announced at 0830 GMT today.

Analysts at BNP Paribas believe that Switzerland’s monetary authorities won’t raise the rates today even though the country’s economic data so far was really encouraging. The reason for the central bank to refrain from monetary tightening is strong national currency that renewed yesterday its record maximum versus euro at 1.2756. The SNB may marginally revise up its 2.5% GDP estimate for 2010, but is likely to announce forecast for 2011 growth below 2.0%, claims BNP.

Currency strategists at UBS AG note that, as they have predicted, the pair EUR/CHF hit their long-term downside target at 1.28. Franc appreciated because of the euro zone’s debt problems, lack of liquidity and investors expecting SNB to be more hawkish at today's quarterly meeting. The specialists warn that the single currency may rebound initially to 1.30. In their view, Swiss central bank will have to show some dovish intentions.



Chart. H4 EUR/CHF

More info about FBS