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19 Mar 2015
It’s the turn of the SNB and Norges Bank today – Danske Bank
FXStreet (Edinburgh) - Analysts at Danske Bank remarked the relevance of the two upcoming monetary policy meetings today.
Key Quotes
“We expect the Swiss National Bank (SNB) to keep the sight-deposit rate unchanged at -0.75% in connection with today’s monetary meeting”.
“SNB president Jordan has indicated that there is room for lower interest rates if needed”.
“Given that SNB has stayed on the sidelines recently, we do not expect it to cut interest rates today. However, SNB is still targeting a weaker CHF and in our view it will eventually be forced to a minor cut in the sight deposit rate”.
“We expect Norges Bank to lower interest rates by 25bp and to present an interest rate path in the new monetary policy report showing a 50/50 chance of a further cut”.
“This is closely in line with current market expectations and should therefore have only a moderate market impact”.
“However, there is considerable uncertainty about the outlook for the Norwegian rates at the moment. Other central banks moving into negative territory are reinforcing the downward pressure stemming from the lower oil price. The depreciation of the NOK and the current acceleration in the housing market are pulling in the opposite direction. Hence, it could be a busy day in the Norwegian market”.
Key Quotes
“We expect the Swiss National Bank (SNB) to keep the sight-deposit rate unchanged at -0.75% in connection with today’s monetary meeting”.
“SNB president Jordan has indicated that there is room for lower interest rates if needed”.
“Given that SNB has stayed on the sidelines recently, we do not expect it to cut interest rates today. However, SNB is still targeting a weaker CHF and in our view it will eventually be forced to a minor cut in the sight deposit rate”.
“We expect Norges Bank to lower interest rates by 25bp and to present an interest rate path in the new monetary policy report showing a 50/50 chance of a further cut”.
“This is closely in line with current market expectations and should therefore have only a moderate market impact”.
“However, there is considerable uncertainty about the outlook for the Norwegian rates at the moment. Other central banks moving into negative territory are reinforcing the downward pressure stemming from the lower oil price. The depreciation of the NOK and the current acceleration in the housing market are pulling in the opposite direction. Hence, it could be a busy day in the Norwegian market”.