Street Calls of the Week
Investing.com - The Swiss National Bank (SNB) is expected to keep its policy rate at 0% at its upcoming meeting next week, according to Bank of America (NYSE:BAC).
BofA analysts maintain their view that the zero-interest-rate policy will remain in place for the coming quarters. The bank anticipates the SNB will continue to reference its willingness "to be active in the foreign exchange market as necessary" in its statement, while also being ready to "adjust its monetary policy if necessary."
Swiss inflation is projected to bottom out in the second quarter of 2025 before gradually reaccelerating in the second half of 2025 through 2027. BofA expects a small upward revision to the SNB’s inflation forecast for the second half of 2025, with annual averages predicted at 0.2-0.3% this year, 0.5-0.6% in 2026, and 0.7% in 2027.
With the SNB having adopted a zero-interest-rate policy in June, BofA suggests that discretionary foreign exchange interventions could become an additional policy tool, particularly in response to safe-haven flows triggered by uncertainty.
The SNB has recently enhanced its communication strategy, announcing plans to release summaries of its monetary policy discussions four weeks after each policy rate decision, with the first summary to follow the September meeting.
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