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SNB likely to keep rates at 0.00% through 2027, ING says

ING links the view to Swiss franc underperformance versus rising global rates, arguing it could support USD/CHF moving toward 0.85 in August if the Fed hikes.

Reported · Written up by our desk · Major Pairs

INGs Chris Turner cited a Bloomberg source report that Swiss National Bank officials are leaning toward keeping the SNB policy rate at 0.00% until end 2027, a stance that matches ING own forecast for an extended hold.

Turner said the guidance would likely reinforce CHF underperformance during periods when global interest rates rise, because widening interest rate differentials work against the franc as Swiss yields remain low.

He added that the outlook could make USD/CHF a popular vehicle for expressing hawkish Fed expectations, with ING pointing to a scenario where a Fed hike could lift USD/CHF toward 0.85 in August.

Turner also said the report may encourage carry trade investors to shift funding out of Swiss francs and toward funding strategies that avoid yen risk, referencing the possibility of Bank of Japan intervention and describing it as a risk for yen funded carry trades.

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