SNB to stick to dovish script despite franc’s fall

At its meeting on 14th September, the Swiss National Bank will surely draw some comfort from the depreciation of the franc since it last met in June. But renewed geopolitical tensions and the ECB’s reluctance to commit fully to QE tapering suggest that upside risks to the currency remain. As such, we doubt that the SNB will risk tweaking its very accommodative policy stance even slightly and expect it to reiterate that the franc is “significantly overvalued”.