ING Sees No Rate Hike for SNB After Swiss Economy Beats Expectations

ING, a Dutch bank, expects the Swiss National Bank to hold its key interest rate at 0% when it meets on September 24. The SNB's decision comes after Switzerland's economy grew 1.5% in the second quarter compared to the previous quarter.

According to ING, this growth is real and has led them to raise their outlook for the next couple of years. However, they do not think that this faster activity will translate into higher prices. Inflation remains low, and domestically driven price pressures are contained.

The bank also points out that Switzerland felt the global energy shock less intensely than many peers, resulting in less lasting upward pressure on household bills. Additionally, the Swiss franc remains strong, making foreign goods cheaper for local consumers.

ING's view is that the data does not give the SNB a compelling reason to tighten policy now, so a 0% rate could stick around beyond September 24.