SNB Rates Seen Unchanged Until End of 2027 Amid Low Inflation Pressure

Switzerland's National Bank is expected to maintain its interest rates unchanged until the end of 2027, according to Commerzbank analyst Michael Pfister. In a recent analysis, Pfister noted that imported inflation and low exchange rate pass-through have contributed to subdued inflationary pressure in Switzerland.

Pfister pointed out that despite a recent uptick in prices, his forecast suggests that inflation will rise only slightly, if at all. He attributed this prediction to the smaller-than-expected exchange rate effect on imported goods.

This outlook supports Pfister's long-standing forecast of steady SNB interest rates until 2027. The analyst also expects a persistent rate differential between Switzerland and the Euro area, which should benefit the EUR/CHF exchange rate in the medium term.