CHF is ‘not strong in real terms’ – no need for SNB intervention

A note from Standard Chartered on the Swiss National Bank and the Swiss franc. 

The SNB monetary policy meeting is next week, September 19.

In brief, Stan Chart argue the franc is not strong in real terms

• adjusting EUR/CHF for inflation leaves CHF around 10% weaker than (non-adjusted) current spot
• no need for SNB to intervene to try to weaken it
• therefore the SNB is not likely to cut rates at their meeting, nor intervene in forex markets in the near term

EUR/CHF chart, September 2019

- Click to enlarge