Swiss National Bank Rate Hike Expectation Delayed, Now Expected to Hike No Earlier Than June Next Year

August 10th. Economists have pushed back their expectations for the Swiss National Bank to raise interest rates, with the earliest expected timing now not until after June next year. According to a monthly survey conducted by institutions, economists who previously thought borrowing costs would rise this year now believe that the Swiss National Bank may not take action until 2027; most economists believe that the first rate hike may not occur until early 2028.

The shift in market expectations is due to earlier reports indicating that the Swiss National Bank internally expects the policy rate to remain at 0% until the end of 2027 before any potential increase. This assessment is based on the premise that there will be no major new shocks in the future and is in line with the general expectation of economists. (FXStreet)