GBP/CHF holds near 1-month low, eyes on BoE and SNB

The GBP/CHF currency pair held not far from 1-month low of 1.0929 on Wednesday, as investors braced for the outcome of the Bank of England’s and the Swiss National Bank’s policy meetings.

The Bank of England is expected to maintain its benchmark interest rate at 4.25% at its June 19th meeting.

In May, the BoE lowered its benchmark interest rate by 25 basis points to 4.25%. Two MPC members voted in favor of a larger, 50 bps rate cut, while two other members opted to hold rates at 4.5%.

BoE Governor Andrew Bailey had said the Committee had room to reduce interest rates due to the ongoing moderation of inflationary pressures.

Meanwhile, the Swiss National Bank is expected to lower its key policy rate by 25 basis points to 0% at its June 19th meeting.

In March, the SNB lowered its policy rate by 25 basis points to 0.25%, the fifth straight rate cut in the current easing cycle, which brought borrowing costs to their lowest level since September 2022.

Back then, the central bank maintained its inflation forecast at 0.4% for this year and at 0.8% for both 2026 and 2027.

The GBP/CHF currency pair was last up 0.26% on the day to trade at 1.0981.