SNB meeting was unsurprising, with the Bank leaving its policy rate at 1.75%, as was widely expected. We would describe this as a dovish hold.

The end-horizon inflation forecast was lowered from 1.9% in 2026 to 1.6%, but we think this is still much too high. 

The SNB is still willing to intervene, but no longer believes it is necessary to express a bias for selling FX reserves. We think from this point on we should see the value of FX sales falling, making it harder for CHF to strengthen much further in the medium-term.