Market Insight: The final end of the zero-interest-rate era is imminent
Another central bank worldwide keeps the key interest rate at zero percent. But in this currency area too, inflation is picking up. A global monetary policy experiment is coming to an end, says Jakob Blume.
The Swiss National Bank (SNB) has revised its inflation forecast, now expecting a 1.2% inflation rate over the next six months, up from 0.8%. This has led to a decline in the value of the Swiss franc, which is currently trading at less than 1.06 euros, near its lowest level in 12 months. Despite keeping interest rates at 0%, experts expect the SNB to raise rates next year, ending the global zero-interest-rate policy.
The franc's weakness is attributed to the SNB's lag behind the European Central Bank and the US Federal Reserve in raising interest rates. Economists, including Daniel Hartmann of Bantleon and analysts at UBS, predict that the SNB will raise interest rates, possibly as early as December or March 2027.
Written by urgent.news from Handelsblatt's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
