08:05 AM EDT, 09/30/2025 (MT Newswires) -- The Swiss central bank (SNB) last week held rates at 0% and signaled no need for negative rates, as Swiss economic risks -- including United States tariffs -- are seen as manageable, said UBS.

Market expectations have shifted in line with the bank's view of no further rate cuts.

Despite negative real rates, the Swiss franc (CHF) has remained well supported due to its perceived safe-haven appeal, though yield differentials and eurozone resilience should help EUR/CHF inch higher by year-end, stated UBS.

The bank keeps its EUR/CHF forecasts from Q4 2025 to Q3 2026 unchanged at 0.94. With a stable EUR/CHF and Swiss rates at zero, the euro (EUR) offers better total returns, according to UBS.