The Swiss National Bank (SNB) is going to do away with negative interest rates today. Economists at Commerzbank expect the central bank to continue paving the way for a stronger Swiss franc.

CHF remains tool in the SNB’s fight against inflation

“SNB is expected to hike rates by 75 bps to 0.5%. However, what is decisive for the development of CHF is mainly what the SNB signalled regarding its intervention strategy.”

“The SNB cannot accept major franc depreciation if it wants to avoid undesirable inflationary effects. We therefore expect that it continues to signal an exchange rate policy that paves the way for further CHF strength.”