SNB Pledges Zero Rates Until End of 2027 Amid Inflation Forecasts

The Swiss National Bank (SNB) has announced plans to keep its key interest rate at zero until the end of 2027. This decision is based on current forecasts for inflation, which assume no major new shocks, according to people familiar with the central bank's thinking.

The SNB's view is also influenced by the franc's recent weakening against the euro and the rate differential between Switzerland and the European currency bloc.

No specific details were provided on what might trigger a change in policy after 2027, but it is likely that the central bank will begin to raise interest rates at some point thereafter.