PrintUBS Sees Swiss Central Bank Keeping 0% Policy Rate This Year; Possible First Rate Hike in 2027
BY MT Newswires | ECONOMIC | 10:56 AM EST10:56 AM EST, 02/11/2026 (MT Newswires) -- With inflation in Switzerland declining sharply, the Swiss central bank (SNB) cut its policy rate from 0.5% to 0% in the first half of 2025, said UBS.
In the second half, it remained unchanged, noted the bank.
The SNB stated last July that the threshold for reducing rates into negative territory was high, pointed out UBS. Low inflation and below-average growth in the Swiss economy in 2026 would probably not be sufficient to justify further cuts in rates.
As a consequence, the bank expects the policy rate to remain unchanged this year at 0%. The first hikes in rates are possible in 2027, according to UBS. In the bank's view, growth should pick up again next year and inflation increase.
However, if, contrary to the bank's expectations, the Swiss economy were to stutter, the SNB could take rates back into negative territory.
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