SNB Rate Hike Expectations Remain Low Amid Market Uncertainty

Swiss bankers are largely expecting the Swiss National Bank (SNB) to keep its key interest rate at 0% this year and into next year. According to a survey by the Swiss Bankers Association, all of the surveyed bankers believe that the SNB will maintain its current rate of 0% for the rest of 2026.

Looking ahead to 2027, about 60% of the bankers expect the SNB to keep its policy in place at 0%, while some 40% anticipate a rate hike. Of those expecting an increase, most believe it will be a small one, with a target interest rate of 0.25%. One respondent went further, predicting that the central bank will raise its policy rate to 0.5%.

Markets are also anticipating no change from the SNB in its next monetary policy update on September 24, with a 97% chance of no alteration priced in by investors. The first potential interest rate increase is expected to come in June next year, with markets forecasting a 25 basis point rise to 0.25%.