The Swiss National Bank is set to hold its benchmark interest rate at zero percent when it meets on June 18, according to a unanimous Reuters poll of 35 economists conducted between June 11-15. The consensus extends beyond the immediate decision, with 28 forecasters expecting rates to remain at zero throughout the entire year and potentially into 2026.
This prolonged ultra-loose monetary policy stance signals the SNB’s continued commitment to supporting the Swiss economy amid persistent challenges. Traders should anticipate stability in Swiss franc positioning, though the currency may face downward pressure against central banks maintaining higher rates. The decision impacts currency pairs particularly EUR/CHF and USD/CHF, while Swiss bond yields are expected to remain compressed. Financial institutions with Swiss franc exposure should prepare for an extended period of minimal returns on franc-denominated assets.
FXnCO Insight
Position for continued Swiss franc weakness against higher-yielding currencies as the interest rate differential widens, particularly favoring long positions in USD/CHF and EUR/CHF through year-end.
Source: FXStreet