BofA: Swiss National Bank to Hold Rate at Zero in December Meeting

07:55 AM EST, 12/05/2025 (MT Newswires) -- BofA Global Research expects the Swiss National Bank (SNBN.SW) to maintain its key rate at 0% at its Dec. 11 monetary policy assessment but said negative rates remain a risk. "The future path of inflation matters. We think Swiss inflation within the 0-2% band and reaccelerating gradually from 2025 year-end into 2027 is consistent with policy rates at zero," analysts said in a Friday preview note. "We regard such an inflation profile - slowly picking up from now and staying firmly within the 0-2% target range - to be the central argument behind our SNB call. A few months of inflation in the 'the lower end of SNB range of price stability' would not prompt any action towards negative rates, in our view." The research firm projects an increase in Swiss inflation to 0.4% in 2026 from 0.2% in 2025, before picking up to 0.7% in 2027. BofA expects the Swiss central bank to keep the zero-interest-rate policy until 2027. However, it noted that the SNB could opt for negative rates if the Swiss inflation outlook falls below its target range on a persistent basis.