Sources said the Swiss National Bank plans to hold its key policy rate at zero
through end-2027, only considering hikes thereafter based on current inflation
projections and assuming no major new shocks. Recent CHF/EUR weakness and the
Swiss–eurozone rate differential factored into the view. Sources said negative
rates remain a contingency if the outlook deteriorates, but are not the
baseline. They added zero rates have not materially hurt Swiss banks’
profitability. The SNB left rates unchanged at its June meeting and had
signaled it expected rates to remain unchanged through the end of next year.
