September 23, 2026

The Swiss National Bank (SNB) will likely hold its policy rate at 0% through 2027 rather than use the current favorable backdrop to rebuild policy space with a premature hike.

SNB officials could choose to rephrase the sentence the policy statement traditionally uses to describe the franc as overvalued, and convey the central bank is ready to intervene to weaken it to secure price stability.

A step to de-emphasize its readiness to intervene in the FX market would signal the Governing Board deems the widening policy differential with the ECB is becoming a policy-relevant factor for the SNB, which would pave the way for a hike during the projection horizon.

Validation

(Bloomberg) — The Swiss franc dipped to the lows of the
day versus the euro after the SNB kept its policy rate at 0% as
expected and changed its wording on FX intervention:

*SNB: WILLINGNESS TO INTERVENE IN FX MARKETS IF NEEDED
*SNB DROPS ‘INCREASED WILLINGNESS’ WORDING FROM FX
STATEMENT