The GBP/CHF currency pair held in proximity to a 1-month high of 1.0499 on Tuesday ahead of the outcome of the Bank of England’s and the Swiss National Bank’s policy meetings.
The Bank of England is expected to leave its benchmark interest rate intact at 3.75% at its March 19th meeting.
BoE’s February decision to hold rates was a narrow 5 to 4 vote, as officials weighed easing inflation pressures against risks stemming from a weakening economy. Four members voted in favor of a 25 basis point cut, which highlighted growing divisions within the Monetary Policy Committee.
BoE policy makers said that risks of persistent inflation had decreased, while weaker demand and a softening labor market posed downside risks.
The MPC indicated that further rate cuts were likely, but they would depend on incoming inflation figures. BoE Governor Andrew Bailey expressed confidence that inflation would reach the 2% target sooner than previously thought.
Meanwhile, the Swiss National Bank is expected to keep its policy rate without change at 0% at its March 19th meeting.
Swiss inflation has remained subdued. The central bank had forecast average inflation at 0.2% for 2025, at 0.3% for 2026 and at 0.6% for 2027.
The SNB had also reaffirmed its readiness to intervene in the Forex market if needed.
The GBP/CHF currency pair was last up 0.13% on the day to trade at 1.0488.





