Chief economists and investment officers at Swiss banks overwhelmingly expect the Swiss National Bank to maintain its zero interest rate policy, the Swiss Bankers Association (SBA) said on Thursday.
Switzerland’s central bank in June cut its interest rate to zero and has not ruled out taking the rate below zero, even though it has stressed it does not like negative rates.
Lower interest incomes ate into Swiss banks’ profits last year and are set to remain the main burden for the sector’s aggregate business success in 2025, the SBA said, citing a poll of member companies.
While banks expected trading to remain stable and saw a slight growth potential in commission and service income, they had little confidence this would offset the decline in interest rate business, the SBA added as it presented its half-yearly outlook for the Swiss banking sector.