SNB Pushes Back Rate Hike Predictions Amid Stable Inflation and Franc Levels

The Swiss National Bank (SNB) has pushed back its interest-rate increase predictions, with no move anticipated before June next year at the earliest. This shift in view comes after economists had initially forecasted a rate hike as soon as this year.

In a Bloomberg survey, most economists now assume a first hike only in early 2028, while some forecasters expect a mid-2027 increase. The current expectation inside the SNB is for the policy rate to stay at zero until the end of 2027, before it then probably rises.

This outlook assumes no further shocks occur and matches the consensus of economists. Swiss officials cut their benchmark to zero last year as they contended with slow inflation and a strong franc. Since then, price growth has quickened very slightly to 0.4%, while the currency is trading at similar levels.