How will the SNB respond to ECB tapering?

The Swiss National Bank will surely welcome the likely announcement later this month by the European Central Bank that it will wind up its asset purchase programme next year. This will probably help the Swiss franc depreciate a bit further, supporting the nascent recovery in Swiss inflation and taking the pressure off the SNB to intervene in the currency markets. However, with the ECB set to stress that interest rate hikes are still a long way off, we see the SNB sticking to its ultra-accommodative policy stance until 2020.