SNB to Hold Rates Steady Amid Low Inflation
ING, a financial institution, expects the Swiss National Bank to hold its policy rate at 0% when it meets next Thursday. This decision is based on Switzerland's low inflation rate and strong franc.
The bank cites benign consumer inflation of 1.1% in August as one reason for maintaining an accommodative stance. It also notes that global energy prices are expected to decline, limiting the need for tighter policy.
ING has increased its forecast for Swiss GDP growth, projecting 1.9% average growth in 2026 and 1.6% in 2027. This is due to a solid first half of the year, supportive international demand, and a marginally softer currency.
The bank's view diverges from other central banks, which are likely to tighten policy as inflation rises. The SNB will continue its targeted approach to foreign exchange intervention as long as inflation remains subdued and the franc does not appreciate excessively.