The policy decisions should be rather straightforward, with the SNB poised to cut rates by 25 bps while the BOE stays on the sidelines. On the SNB:

“On Thursday, we’ll have the SNB lined up first with the Swiss central bank set to cut its policy rate one more time to 0.25%. Swiss inflation is well under control but the main worry for the SNB now is the franc currency. But I guess with Germany’s debt brake reform, they can take in some comfort in seeing that underpin EUR/CHF. A return to ZIRP or NIRP is not on the agenda for now with traders pricing in this week’s rate cut as the final step for the SNB in this cycle.”

As for the BOE:

“Lastly, we’ll have the BOE and much like the BOJ and Fed there is no rate change expected. The bank rate vote will once again be the key spot to watch but odds are, things could be headed for a rate cut in May next. The odds priced in are at ~64% currently.

At this stage, inflation continues to pose a problem for the BOE as it remains very sticky to start the new year. That will put the BOE on alert with next week’s CPI report going to be crucial in determining their plans for May/June. As things stand, traders are only pricing in two rate cuts for the BOE left for this year.”

The odds of a rate cut priced in for the SNB are at ~68%. Meanwhile, the odds of no change by the BOE are priced at ~98% currently. So, therein lies the balance of risks for both the franc and pound ahead of the respective decisions.

Given the pricing, the franc might see a modest bump if the SNB does keep rates unchanged. As for the BOE, it should be a non-event in terms of the rate decision itself. The bank rate vote will be one to watch out for though. As things stand, traders are not entirely convinced of a BOE move in May (~57%) yet with the next rate cut priced in for June (~97%).