1216 GMT - The Swiss National Bank's policy differential vis-a-vis the U.S. Federal Reserve, the European Central Bank and the Bank of England will widen further, says Christian Schulz, analyst at Citi, lowering the forecast for the SNB terminal rate to 1.5% from 2%. For the second time this year, the SNB hiked its policy rate by less than Citi had expected--by 50 basis points to 1%--, but "this will be offset by FX asset sales, which could amount to CHF60bn per quarter," Schulz says in a note. "With other central banks hiking in similar step sizes but at a higher frequency, interest rate differentials between Switzerland and other major economies will widen to record levels, which should exert significant downside pressure on the Franc," Schulz says. (emese.bartha@wsj.com)

(END) Dow Jones Newswires

December 15, 2022 07:16 ET (12:16 GMT)

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