Switzerland: Swiss bankers expect the Swiss National Bank (SNB) to keep its key interest rate unchanged at 0% for the remainder of 2026, with most also forecasting no change through 2027, according to a survey by the Swiss Bankers Association.
The survey found that all respondents expect the SNB to maintain its policy rate at 0% for the rest of this year. About 60% expect the rate to remain at the same level throughout 2027.
The remaining 40% expect the central bank to begin raising rates next year. Most of those respondents forecast a 25-basis-point increase to 0.25%, while one expects the rate to reach 0.5%.
The SNB is scheduled to announce its next monetary policy decision on September 24.
When could the SNB change its interest rate?
Financial markets are largely expecting the SNB to leave its policy rate unchanged at its September meeting.
Market pricing indicates a 97% probability of no change on September 24. Investors currently expect the first rate increase to come in June, with the policy rate rising by 25 basis points to 0.25%.
The outlook reflects expectations that the SNB will maintain its current monetary policy stance while monitoring economic and financial conditions.
What do Swiss bankers expect for 2027?
The survey shows a divided outlook for next year. While 60% of respondents expect the SNB to keep rates at 0%, 40% anticipate at least one rate increase.
Among those expecting a hike, most predict the policy rate will rise to 0.25%, while one respondent forecasts a move to 0.5%.
The survey provides an indication of expectations among Switzerland’s banking sector ahead of the SNB’s upcoming monetary policy decisions.