Swiss Franc: Policy rate seen on hold – ING
ING economist Charlotte de Montpellier expects the Swiss National Bank to keep its policy rate at 0% next Thursday and over the coming quarters, as Swiss growth has surprised on the upside but inflation remains subdued.
ING economist Charlotte de Montpellier anticipates the Swiss National Bank (SNB) will maintain its policy rate at 0% next Thursday and throughout the upcoming quarters. This decision follows Switzerland's unexpected growth outpacing forecasts and inflation remaining low. De Montpellier points out that the stronger GDP and a slightly weaker Swiss Franc do not currently pose an inflation risk, allowing the SNB to keep its accommodative monetary policy.
The research firm has revised its GDP growth forecast to an average of 1.9% in 2026 and expects 1.6% growth in 2027. These projections are driven by solid first-half performance, better international demand, and the Swiss Franc's recent weakening. The SNB is expected to keep its 0% policy rate unchanged and maintain a more accommodative stance compared to other central banks.
This stance is likely to persist as long as domestic inflation stays subdued and the Swiss Franc stays strong, albeit without appreciating excessively.
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