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# SNB Meeting Results, Weakening Franc, Geopolitical Risks
- URL: https://www.natglobalmarkets.com/snb-meeting-results-weakening-franc-geopolitical-risks/
- Published: 2026-09-24T10:30:42.000Z
- Updated: 2026-09-24T15:01:46.000Z
- Author: Research Team

Following its September 24 meeting, the Swiss National Bank left its interest rate unchanged at 0%. The rate decision was in line with market expectations; all economists polled by Reuters had forecast a rate hold.

The SNB's updated inflation forecast was slightly raised compared to its June estimate. Inflation is expected to reach 0.7% by the end of 2026 and 0.8% in 2027\. The bank did not announce a possible rate change; its baseline scenario assumes the rate will remain at zero until at least the end of 2027.

![](https://storage.ghost.io/c/b8/f9/b8f92713-dec7-40a2-b5fd-efc6ce9d8bf5/content/images/2026/09/EURCHF.sDaily--webp.webp)

EURCHF SFA Index D1

At a press conference following the meeting, SNB Governor Schlegel stated that the bank remains highly prepared to intervene if the franc strengthens excessively, which would threaten price stability in Switzerland. Schlegel traditionally avoids specific franc exchange rates, citing the franc's status as a safe haven. The Swiss franc has long maintained its status as a safe haven asset, and demand for it steadily grows during periods of global uncertainty. For instance, after the onset of the April 2025 trade wars, the franc strengthened by more than 10%. However, it's worth noting that a significant portion of this strengthening was driven by a weakening US dollar. Throughout 2026, the franc weakened despite heightened geopolitical risks, particularly from the conflict in Iran. In our opinion, the franc's weakness is primarily due to strong selling pressure on the franc due to carry trades. This weakness is periodically interrupted by upward movements amid a sell-off in global stocks and risk aversion.

As expected, the market responded to the conclusion of the SNB meeting with a weakening franc. The USDCHF pair saw the largest gains (+0.4%) due to the fundamental strength of the US dollar following last week's interest rate hike. The CADCHF also rose noticeably, possibly reflecting hedging strategies against the risks of conflict in Iran and a potential strengthening in oil prices. The EUR/CHF pair rose slightly more than GBP/CHF (+0.32% vs. +0.30%), following yesterday's drop in the UK PMI alongside a rise in the Eurozone's PMI.