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Swiss National Bank Sticks with Zero Interest Rate
The Swiss National Bank cited a US tariff reduction that improved economic outlook despite inflation at the lower target range and a strong franc pressuring prices.
- Yesterday the Swiss National Bank left its policy rate at 0%, marking a second consecutive unchanged benchmark and matching market and analysts' expectations of 23 economists.
- The SNB meeting followed a November deal in Washington that cut US tariffs on Swiss goods to 15% from 39%, easing damage to Swiss exporters of watches, chocolate and machinery.
- Recent monthly data revealed inflation at 0% in November and three months of weaker-than-expected consumer-price growth, Mandruzzato said, 'Swiss inflation has been low, but the SNB sees this as a temporary phenomenon and driven by factors outside its control, like oil prices.'
- Markets reacted with the Swiss franc strengthening, gaining 0.3% to 0.7979 per dollar and 0.2% versus the euro, as the SNB judges low inflation will not trigger another rate cut and said it will monitor conditions, remaining willing to use negative rates if needed.
- Looking ahead, the SNB forecasted inflation of 0.3% next year and 0.6% in 2027, growth about 1% next year, and Bloomberg Economics expects possible FX interventions in coming months.
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Swiss National Bank Holds Interest Rates at 0% as Inflation Hits Zero
The Swiss National Bank (SNB) kept its key interest rate unchanged at 0%, reinforcing its view that current monetary policy continues to support economic growth while keeping inflation firmly within the country’s price-stability range.
As expected, the Swiss National Bank left its key interest rate unchanged at 0.0% and slightly adjusted its growth forecasts, noting that uncertainty has "somewhat dispelled" even though it remains "significant".
The decision of the Swiss National Bank to keep the key interest rate at zero percent did not wave on Thursday on the Swiss stock market.
Coverage Details
Total News Sources11
Leaning Left2Leaning Right0Center1Last UpdatedBias Distribution67% Left
Bias Distribution
- 67% of the sources lean Left
67% Left
L 67%
C 33%
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