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GBP/CHF Forecast: The Pound Sterling at Its 2026 High Against the Swiss Franc (September 2026)

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By Brice DELHOME

Finance & Currency Expertise Rates & Forecasts
📌 In Brief: GBP/CHF on 28 September 2026
  • Current rate: the pound is worth 1.1032 francs, its highest level of the year. It was worth 1.0662 on 2 January and 1.0389 at its low, on 27 February. Our corridor through the end of the year: 1.0800 – 1.1100.
  • The driver: a yield gap of 3.75 points. The Bank of England is holding its rate at 3.75%, the SNB remains at 0%.
  • What is new: UK inflation climbed back to 3.1% in August, and on 17 September, three of the nine members of the Bank of England's Committee voted for a rate hike.
  • For an income in pounds: 5,000 pounds are now worth about 5,516 francs, that is 321 francs more than at the February low, but still 111 francs less than at the 2024 average.
  • The risk to watch: the UK budget of 28 October, then the Bank of England on 5 November. Converting in regular tranches remains the method that rests on no bet at all.

In late September the pound sterling reached its highest level of the year against the Swiss franc, carried by a British central bank that refuses to cut its rates while Switzerland stays at zero. This guide explains what is supporting the pound, what could push it back down through the end of the year, and what this level is worth in francs for those who receive or pay in pounds from Switzerland.

Contents of this guide:

Market flash: the situation on 28 September 2026

GBP/CHF stands at around 1.1032 on 28 September, its highest level of 2026, which it had already touched on 15 September. It has gained 3.5% since 2 January and 6.2% since its low of the year, 1.0389 on 27 February — a level only a whisker above the November 2025 floor, the lowest for this cross since the launch of the euro in 1999. Two central bank decisions framed the end of the month. On 17 September, the Bank of England held its policy rate at 3.75%, but by six votes to three, with the three dissenters calling for a hike. On 24 September, the Swiss National Bank held its own at 0%, with no signal of a hike. The pound, which had fallen to 1.0925 the day before the Swiss announcement, was worth 1.0942 on the day itself and regained 0.8% over the following two sessions.

Over a longer horizon, the 2026 move remains a catch-up. The pound averaged 1.1253 francs in 2024 and 1.0942 francs in 2025, with a peak of 1.1663 in May 2024: the current level is therefore the best of the year, not the best of the recent period. This reminder matters for anyone comparing their purchasing power from one year to the next. You can follow the move live on our real-time GBP/CHF converter, and compare it with the franc's two other major pairs in our analyses of the EUR/CHF exchange rate forecast and the USD/CHF forecast: the franc is losing ground on all three fronts, for the same underlying reason.

📐 Where does the 1.1032 figure come from? The European Central Bank does not publish a reference rate between the pound and the franc. We obtain it by dividing its EUR/CHF reference rate by its EUR/GBP reference rate of the same day: on 28 September 2026, 0.9464 ÷ 0.85785 = 1.1032. This method gives a rate recorded every day at the same time, by a public source, and ensures consistency with our EUR/CHF and USD/CHF analyses. The rate you see on a market screen at another time of day may differ from it by several thousandths.

Why is the pound rising against the Swiss franc?

Because it pays, and because the market now expects it to go on paying for a long time. On the currency market, what sets the price of a currency first is not the health of its economy, it is its yield and the expected path of that yield. Four forces are combining on the pair today.

1. The Bank of England is no longer cutting, and part of its Committee wants to hike

The Bank of England last cut its policy rate on 18 December 2025, to 3.75%, at the end of a cycle of four cuts in 2025. It has not moved since. On 17 September 2026, its Monetary Policy Committee confirmed this level by six votes to three: Megan Greene, Catherine Mann and Huw Pill voted for a hike to 4%, as they had already done on 30 July. The statement notes that inflation rose to 3.1% in August and that it is expected to increase further over the coming quarters, in particular because the conflict in the Middle East has contributed to new rises in energy prices. It cites a staff projection of around 3.75% in the fourth quarter of 2026 and slightly above 4% in the first quarter of 2027. Sources: Bank of England, Monetary Policy Summary and minutes, September 2026; Monetary Policy Summary, July 2026.

The majority does not yet see a reason to tighten: the same statement finds few signs, at this stage, of second-round effects, that is, of a rise in energy prices feeding through durably into wages and other prices. But the direction has changed. A year ago, the question was when the Bank of England would cut again; today, it is whether it will hike. For the franc, which pays nothing, the difference is considerable.

2. UK inflation is picking up again, the economy is holding up

According to the Office for National Statistics, UK inflation, driven by motor fuels, rose from 2.9% in July to 3.1% in August 2026; it stood at 2.6% in June, according to the Bank of England. A litre of petrol reached an average of 161.3 pence in August, its highest level since November 2022. Core inflation, excluding energy and food, remains stable at 2.6%, and services inflation at 3.4%. Activity, for its part, is holding up: gross domestic product grew 0.4% in July month on month, and 0.4% over the three months to the end of July. The labour market is the weak point of the picture, with an unemployment rate of 4.9% and regular pay up 3.5% year on year. Sources: ONS, consumer price inflation, August 2026; Bank of England, Monetary Policy Summary, July 2026 (June inflation); ONS, GDP monthly estimate, July 2026; ONS, labour market, September 2026.

Rising inflation combined with growth that holds up is exactly the combination that prevents a central bank from cutting its rates. As long as it lasts, the pound keeps its yield advantage.

3. The point of fragility: government bonds and the 28 October budget

The picture has a less comfortable side. The yield on the ten-year UK government bond rose from 4.52% on 2 January to a high for the year of 5.37% on 14 September, and still stood at 5.33% on 25 September. Part of this rise reflects rate expectations; another part stems from budgetary uncertainty. Andy Burnham became Prime Minister on 20 July 2026 and on the same day appointed John Healey as Chancellor of the Exchequer, replacing Rachel Reeves. The new Chancellor will present his first Autumn Budget on 28 October 2026, accompanied by the forecasts of the Office for Budget Responsibility. Sources: HM Treasury, letter from the Chancellor setting the budget date; Bank of England, statistical database (government bond yields).

The mechanism to remember: high rates support a currency when they reward a central bank judged credible. They stop supporting it when they reward a risk — the risk that a state will struggle to finance its debt. In the first case, the currency and yields rise together; in the second, yields rise and the currency falls. The 28 October budget will tell which case the pound is in. So far, the two have risen together: that is the first case.

4. On the Swiss side: a franc that pays nothing and an SNB that is not moving

On 24 September 2026, the Swiss National Bank held its policy rate at 0% for the fifth consecutive time. It raised its inflation forecasts to 0.7% for 2026 and 0.8% for 2027 and 2028, without mentioning a rate hike. It notes that the franc has lost about 3% in trade-weighted terms since June, and attributes this decline to the widening of interest rate differentials with other countries. It remains willing to intervene in the foreign exchange market if necessary. Swiss inflation stood at 0.8% in August. Sources: Swiss National Bank, press release of 24 September 2026; Federal Statistical Office, consumer price index.

Against the pound, this gap now stands at 3.75 points, against 2.50 points against the euro: this is one of the reasons why the pound has gained more than the euro against the franc since the spring. An investor who holds francs rather than pounds gives up this yield every year. As long as the SNB stays at zero, the pound does not need good news to hold its ground; it only needs to avoid bad news.

The levels that matter now on GBP/CHF

The pair is trading at its high of the year, 1.1032, just above the round 1.1000 threshold, which it crossed for the first time in 2026 on 11 September. Above, the next marker is the 2024 average, 1.1253, then the 2025 high, 1.1452, reached in March 2025. On the downside, the level on the day of the SNB announcement, 1.0942 — which is also the 2025 average —, forms a first support, ahead of the July average, around 1.0840. The low of the year, 1.0389, marks the floor of the period. One caveat is in order: a budget or a central bank decision can invalidate these levels in a single session, and that is precisely why they are not a decision-making method for anyone converting an income.

What are the GBP/CHF forecasts through the end of 2026?

Nobody knows the rate on 31 December, but the plausible paths can be framed and, above all, priced. First, a methodological point: to our knowledge, no major bank publishes a direct forecast for the GBP/CHF pair. It can, however, be derived from their forecasts on the euro. Those of ING, published on 7 September 2026, put EUR/GBP at 0.87 at three months and 0.88 at six months, and EUR/CHF stable at 0.94. By calculation, this gives a pound at around 1.080 francs at three months and 1.068 at six months, a slight decline from current levels. ING considers that the market is pricing in too many Bank of England hikes — around 70 basis points in early September — and flags the 28 October budget as a risk for the pound. Source: ING, G10 FX Talking, September 2026. These third-party projections are quoted as a market marker, not as a prediction, and do not commit ibani.

ScenarioTriggerGBP/CHF zone5,000 GBP are worth
The pound extends its riseUK inflation for September, published on 21 October, keeps rising; the 28 October budget is well received by the bond market; the Bank of England raises its rates on 5 November or clearly signals that it will1.1100 – 1.1400 (beyond our corridor)~5,550 CHF to ~5,700 CHF
Consolidation around the current level (central)A budget without surprises, a Bank of England still divided but at 3.75%, the SNB at 0%: the 3.75-point yield gap continues to support the pound without giving it fresh momentum1.0800 – 1.1100~5,400 CHF to ~5,550 CHF
The pound retreatsThe budget worries creditors and government bond yields rise for the wrong reasons; or inflation falls back faster than expected and the market gives up on rate hikes; or a renewed bout of risk aversion that benefits the franc1.0500 – 1.0800~5,250 CHF to ~5,400 CHF

The gap between the two extremes reaches 450 francs a month on an income of 5,000 pounds, that is 5,400 francs over a year. ING's implied three-month rate, which roughly corresponds to the end of the year, falls in the lower part of our central scenario; its six-month rate, for early 2027, already lies within the zone of our retreat scenario. It is a useful reminder that the current level, the best of the year, is not a floor. The asymmetry of the triggers deserves attention. The pound-friendly scenario assumes UK inflation that keeps rising, that is, bad news for British households; the retreat scenario can come from a single event, the budget, whose date is known but not its content. This is exactly the situation in which a single, hand-picked conversion is least defensible.

What is an income in pounds worth in Switzerland today?

According to the State Secretariat for Migration, 36,010 British nationals were part of Switzerland's permanent resident population as of 31 August 2026, including 8,300 in the canton of Zurich, 6,849 in the canton of Vaud and 4,947 in the canton of Geneva. Source: SEM, foreign nationals statistics, August 2026. Some continue to receive part of their income in pounds: rent from a property still held in the United Kingdom, a British retirement pension, dividends, assignments invoiced to British clients. Add to these the Swiss companies that export to the United Kingdom or pay suppliers there.

For all of them, the level of the pair shows up directly in the current account. Here is how a reference income of 5,000 pounds converted into Swiss francs has evolved.

Reference periodExchange rate (GBP/CHF)Converted income (in CHF)Monthly gap vs 2024 average
2024 average1.1253~5,627 CHF-
2025 average1.0942~5,471 CHF− 156 CHF
2 January 20261.0662~5,331 CHF− 296 CHF
2026 low (27 February)1.0389~5,195 CHF− 432 CHF
30 June 20261.0703~5,352 CHF− 275 CHF
31 July 20261.0873~5,437 CHF− 190 CHF
31 August 20261.0947~5,474 CHF− 153 CHF
17 September 2026 (Bank of England decision)1.1029~5,515 CHF− 112 CHF
24 September 2026 (SNB decision)1.0942~5,471 CHF− 156 CHF
28 September 2026 (current)1.1032~5,516 CHF− 111 CHF / month

*Calculation method: Value in francs = (Amount in GBP) × (GBP/CHF rate). Gross values, based on the ECB cross reference rate, excluding bank margins. The 2024 and 2025 averages are calculated by us from the daily reference rates.

Expert summary: as of 28 September 2026, an income of 5,000 pounds brings in 321 francs more per month than at the 27 February low, the equivalent of 3,852 francs over a year. The 2026 recovery has therefore erased three quarters of the loss accumulated since 2024: only 111 francs a month are now missing to get back to that year's average. This reading has a flip side. About half of the 2026 gain was built up in three months, since the end of June, and rests on a single variable, the yield gap with Switzerland. If the 28 October budget or falling inflation were to call it into question, a good part of this gain could disappear as quickly as it built up.

🇬🇧 The case of the British retirement pension. A resident of Switzerland who receives the UK state pension, the State Pension, keeps its annual increase, which is not the case in every country of residence. It can be paid into an account in the United Kingdom or directly into an account in Switzerland. In the latter case, according to the UK government, the amount is converted into the local currency at the rate in force at the time of conversion, with a conversion fee of 0.39%, and paid every four or thirteen weeks. It is a modest margin; what matters is less the cost than the timing of the conversion, which the recipient does not choose. Source: GOV.UK, State Pension if you retire abroad. Pension and social insurance questions are covered in our guide to the social security and pension system in Switzerland for expats.
💡 The other side of the coin. If you are paid in francs and need to buy pounds — studies in the United Kingdom, buying or maintaining a property, an invoice from a British supplier —, the 2026 rise is working against you. 10,000 francs now buy about 9,065 pounds, against 9,626 at the 27 February low: 561 pounds less in seven months. Compared with the 2024 average (8,887 pounds), the advantage is still 178 pounds, but it has shrunk by three quarters. Companies concerned will find the mechanics in detail in our guide to buying foreign currency for businesses.

How do you convert without losing the benefit of the rate?

On a pair that went from 1.0942 to 1.1032 in two sessions, and that depends on a budget whose content nobody knows, waiting for the ideal entry point is not a strategy, it is a bet. The last few days illustrate this: 1.1029 on 17 September, 1.1003 on the 21st, 1.0925 on the 23rd, 1.0942 on the 24th, 1.0977 on the 25th, 1.1032 on the 28th. None of these moves was announced, and none says anything whatsoever about the next one.

The most robust method: converting in regular tranches. Anyone who converts the same share of their income every month mechanically obtains the average rate for the period, without having to forecast anything. This smoothing, or cost averaging, never delivers the best rate of the year; it avoids converting everything at the worst moment, which is the real objective when the money is income rather than an investment. For a deadline known in advance — tuition fees, a property down payment, a supplier invoice —, the logic is different: that is when it becomes worth locking in a forward exchange rate, a product offered by banks, rather than accepting whatever the day's session brings.

Which dates should you watch through the end of the year?

  • 21 October: UK inflation for September (ONS). A further rise would strengthen the camp in favour of a rate hike within the Bank of England.
  • 28 October: Autumn Budget presented by Chancellor John Healey, with the forecasts of the Office for Budget Responsibility. It is the event most likely to move the pair in either direction; the reaction of the government bond market will matter more than the announcements themselves.
  • 5 November: Bank of England decision, with a new Monetary Policy Report that will take the budget into account. Three votes for a hike in September: two more would be needed to tip the majority.
  • 17 December: the Bank of England's last decision of the year. Reference calendar: meeting dates of the Bank of England's Monetary Policy Committee.
  • December: the SNB's quarterly assessment. A hold at 0% remains the base case.

Why does the bank margin weigh more heavily on the pound?

Market analysis is worthless if execution is faulty. The interbank rate — currently around 1.1032 — is the wholesale price of money. It is never the rate your retail bank applies. The pound sterling is less common than the euro in private individuals' currency exchanges in Switzerland, and the exchange terms applied to it are often less favourable.

The pricing illusion of traditional banks:
On a 5,000-pound conversion, a conventional bank applies a marked-up counter rate and charges international transfer fees. A 2% margin means about 110 francs taken on a single transaction, more than 1,300 francs over a year of monthly transfers — more than double the 45 francs that the pound's rise between 24 and 28 September earned on a 5,000-pound payment. The margin is the only one of the two factors you control.

The ibani alternative: keep what the market gives you

For the real market rate to be reflected as closely as possible in your account, intermediation is what needs optimising. As a currency specialist based in Geneva, ibani supports both individuals receiving income in foreign currencies and businesses collecting or settling in pounds sterling, and offers you:

  • Synchronised with the interbank rate: your conversion is executed in real time, as close as possible to the interbank rate of the moment, with no hidden margins.
  • Radical transparency: clear, straightforward pricing with no additional transfer fees. You know exactly what you receive.
  • Swiss compliance and security: a financial intermediary audited for its activity, affiliated with SO-FIT (SRO), designed specifically to absorb the complexity of cross-border flows with proven reliability.

For the practical steps of settling in Switzerland, including your account, salary and transfers, see also our guide to Swiss banking and currency exchange for expats.

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Frequently Asked Questions (updated 29 September 2026)

As of 28 September 2026, the pound sterling trades at around 1.1032 Swiss francs, its highest level of the year. This rate is obtained by crossing the EUR/CHF and EUR/GBP reference rates published by the ECB; our converter shows the GBP/CHF rate in real time. The pound has gained 3.5% since 2 January 2026 (1.0662) and 6.2% since its low of the year, 1.0389 on 27 February. It nevertheless remains below its 2024 average, calculated at 1.1253. Our working corridor through the end of the year is 1.0800 – 1.1100. It takes roughly 0.906 pounds to obtain one Swiss franc.

Because of yield, not the economic cycle. The Bank of England has held its policy rate at 3.75% since December 2025, while the Swiss National Bank remains at 0%: the gap between the two policy rates reaches 3.75 points. Since the summer, the market has come to see this gap as more lasting, because UK inflation has picked up again, from 2.6% in June to 3.1% in August, and three of the nine members of the Monetary Policy Committee now vote for a hike. The franc, for its part, has lost about 3% in trade-weighted terms since June, which the SNB itself attributes to the widening of interest rate differentials with other countries.

It is not the scenario of the Committee's majority, but only two more votes are needed. On 17 September 2026, the Committee held the rate at 3.75% by six votes to three, with Megan Greene, Catherine Mann and Huw Pill voting for 4%. The statement indicates that inflation, at 3.1% in August, is expected to rise further over the coming quarters, and cites a staff projection of around 3.75% in the fourth quarter of 2026, then slightly above 4% in the first quarter of 2027. The next meeting, on 5 November, will come with a new Monetary Policy Report, which will take into account the budget presented on 28 October. According to ING, the market was anticipating around 70 basis points of hikes in early September, a level the bank considers excessive.

It is the main downside risk for the pound through the end of the year. The Autumn Budget will be presented on 28 October 2026 by John Healey, Chancellor of the Exchequer since Andy Burnham became Prime Minister on 20 July, together with the new forecasts of the Office for Budget Responsibility. The UK bond market is already under strain: the ten-year government bond yield has risen from 4.52% in early January to a high of 5.37% on 14 September, and stood at 5.33% on 25 September. A budget judged credible would strengthen the pound; a budget that worries creditors could push it lower despite high rates, as has already happened in the past.

To our knowledge, no major bank publishes a direct forecast for the GBP/CHF pair; it can, however, be derived from their EUR/GBP and EUR/CHF forecasts. Those of ING, published on 7 September 2026, give by calculation a pound at around 1.080 francs at three months and 1.068 at six months, a slight decline: ING expects the euro to recover against the pound and the franc to remain stable against the euro. These third-party projections are quoted for information only and do not commit ibani. Our own range runs from 1.0500 to 1.1400 through the end of the year, depending on the market's reaction to the budget and on the Bank of England's decision of 5 November, with a central corridor of 1.0800 – 1.1100. On an income of 5,000 pounds, the gap between the two extremes represents 450 francs a month.

The Swiss National Bank held its policy rate at 0% for the fifth consecutive time and raised its inflation forecasts to 0.7% for 2026 and 0.8% for 2027 and 2028, without announcing a rate hike. It notes that the franc has lost about 3% in trade-weighted terms since June and attributes this to the widening of interest rate differentials with other countries. That day, the pound was worth 1.0942 francs; it climbed back to 1.1032 on 28 September. As long as the SNB stays at 0% and the Bank of England stays at 3.75% or above, the yield gap continues to support the pound. The SNB's next assessment will take place in December.

No. The interbank rate corresponds to the wholesale market. Retail banks add a margin to it, known as the bid-ask spread, as well as international transfer fees. The pound sterling is less common than the euro in private individuals' currency exchanges in Switzerland, and the terms applied are often less favourable: a 2% margin on 5,000 pounds represents about 110 francs on a single transaction. Using a currency specialist such as ibani gets you a rate as close as possible to the real market.

It all depends on the direction of the conversion. For anyone earning an income in pounds and living in Switzerland: at 1.1032, an income of 5,000 pounds is worth about 5,516 francs, 321 francs better than at the 27 February low, but still 111 francs less than at the 2024 average. The current level is the best of the year, and the next two events, the 28 October budget and the Bank of England on 5 November, could extend it just as easily as erase it. Conversely, for a Swiss resident who needs to buy pounds, 10,000 francs now buy only about 9,065, against 9,626 at the February low. Converting in regular tranches rather than in one go on a randomly chosen date remains the method that best avoids converting everything at the worst moment.
Regulatory disclaimer: The macroeconomic data and exchange rates mentioned in this article reflect market conditions as of 28 September 2026, after the monetary policy decisions of the Bank of England of 17 September 2026 and of the Swiss National Bank of 24 September 2026. The currency market is inherently volatile and past performance is no guide to future developments. The third-party projections quoted (ING) are provided for information only and do not commit ibani. This information is indicative and in no way constitutes a financial recommendation or investment advice.

Methodology and sources: the GBP/CHF rates retained are calculated by crossing the EUR/CHF and EUR/GBP reference exchange rates published daily by the European Central Bank (1.1032 on 28 September 2026; 1.0977 on 25 September; 1.0942 on 24 September; 1.0925 on 23 September; 1.1003 on 21 September; 1.1029 on 17 September; 1.0947 on 31 August; 1.0873 on 31 July; 1.0703 on 30 June; 1.0389 on 27 February; 1.0662 on 2 January 2026). The high of the year, 1.1032, was reached twice, on 15 and 28 September 2026, to within a few hundred-thousandths. The 2024 (1.1253) and 2025 (1.0942) annual averages, the July 2026 average and the highs and lows quoted are calculated by ibani from these same daily reference rates. The implied GBP/CHF forecasts attributed to ING result from our calculation based on its EUR/GBP and EUR/CHF forecasts published on 7 September 2026. Monetary policy data comes from the Bank of England (Monetary Policy Summaries and minutes of 30 July and 17 September 2026, policy rate history, 2026 meeting calendar) and from the Swiss National Bank (press release of 24 September 2026). UK inflation, growth and employment figures come from the Office for National Statistics (releases of 11, 15 and 16 September 2026), UK government bond yields from the Bank of England's statistical database (nominal curve, readings as of 25 September 2026), the date of the Autumn Budget from the letter from the Chancellor of the Exchequer to the Treasury Committee, and the changes of government from the ministerial pages of GOV.UK. Swiss inflation comes from the Federal Statistical Office, the number of British nationals resident in Switzerland from the foreign nationals statistics of the State Secretariat for Migration (31 August 2026), and the rules for paying the British pension abroad from GOV.UK. This article is revised after every monetary policy decision of the Bank of England or the SNB; the next revision will take place after the UK budget of 28 October 2026 and the Bank of England's decision of 5 November 2026.