Swiss Central Bank Keeps Rate Unchanged
Markets see a growing chance of a hike as traders bet the SNB will lift rates by early 2027, LSEG data showed.
- Switzerland's central bank kept its key interest rate at 0% on Thursday, defying the tightening cycle begun by the Federal Reserve and European Central Bank.
- Alternative energy sources and a history of low inflation expectations keep Switzerland insulated from inflationary surges seen in neighboring nations, allowing the bank to maintain lower rates than peers.
- Gedeon Tumong, head of finance specialization at HIM Business School, noted the Swiss economy enjoys a "safe haven dividend" where foreign capital inflows support the Swiss Franc and curb imported inflation.
- Traders now price in more than a 90% chance the SNB will begin hiking by early 2027, with LSEG data showing the key rate could reach at least 0.75% by next September.
- Recent Swiss Franc depreciation against the Euro increases concerns that inflation may accelerate, prompting UBS economists to suggest the bank could enact a hike earlier than initially expected.
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21 Articles
Despite rising inflation, the Swiss National Bank (SNB) does not charge the key interest rate. This remains unchanged at zero percent, the central bank announced on Thursday. This is the lowest level of all major currency areas.
The Swiss National Bank (SNB, Central Bank of the country) maintained a key interest rate of 0 per cent per annum at the end of the Thursday session.
(Berlin=Yonhap News) Correspondent Kim Gye-yeon = The Swiss central bank maintained zero interest rates despite the tightening stance of monetary authorities in major countries.
Swiss Central Bank Keeps Rate Unchanged
The Swiss National Bank retained its key interest rate at zero percent, as widely expected, on Thursday. Banks' sight deposits held at the central bank will be remunerated at the SNB policy rate up to a certain threshold, the bank said.
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