SNB Rate Freeze and US Tariffs Pressure Swiss Franc

The Swiss Franc is facing short-term pressure due to reports of the Swiss National Bank (SNB) planning to keep interest rates unchanged until early 2028, according to Commerzbank's Michael Pfister.

This news clashes with market expectations for hikes by 2027, which could lead to disappointment if the base rate remains at 0% until the end of next year.

The SNB's internal assumption that interest rates will remain unchanged until 2028 is a significant development, and it may take some time before its potential impact materializes.

Additionally, fresh US tariffs on Switzerland are weighing on the Swiss Franc, as exports to the US have not yet recovered from last year's slump.