07:02 AM EDT, 03/11/2026 (MT Newswires) -- The Swiss central bank (SNB) will likely keep its policy rate unchanged at 0% at its monetary policy assessment on March 19, despite increased appreciation pressures on the Swiss franc (CHF), said UBS.

The conflict in the Middle East has raised energy prices and led to an appreciation of the Swiss franc, wrote the bank in a note to clients.

So far, UBS estimated that both developments have largely offsetting effects on Swiss inflation.

The impact of geopolitical tensions on energy prices is usually short-term, so the bank believes the SNB will buy foreign currencies to counter the CHF's appreciation pressure instead of cutting rates.

If the global growth outlook were to deteriorate, possibly due to significantly higher energy prices, a lowering of the policy rate into negative territory would become more likely, according to UBS.