SNB may keep policy rate at 0.00% until end-2027
The Swiss National Bank may keep its policy rate unchanged at 0.00% until the end of 2027.
This decision is expected to drive Swiss franc underperformance in rising global rate environments.
The Swiss franc is seen as a prime funding currency, with potential for the USD/CHF pair to reach 0.85 in August if the Fed hikes.
Funding out of Swiss francs is cheaper and avoids the risk of the Bank of Japan intervening to the tune of $70bn, which could trigger a quick 3-4% drawdown.