SNB stuck between a rock and a hard place

The re-inclusion of Switzerland on the US Treasury’s Monitoring List of potential currency manipulators this week was interpreted by investors as a shot across the bow of the SNB. However, we doubt that it will weaken the Bank’s resolve to resist upward pressure on the currency if needed. Meanwhile, the Norges Bank is all but certain to leave its key policy rate on hold at 1.50% next Thursday morning.