Swiss National Bank Announces Decision to Keep Interest Rates Unchanged

Swiss National Bank Interest Rate Announcement

The Swiss National Bank (SNB) announced in its latest statement that the policy interest rate remains steady at 0%. This rate stands out as the lowest among major economies.

Inflation Monitoring and Market Interventions

In the statement, it was emphasized that the inflation outlook is being closely monitored and that inflation has remained below expectations in recent months. The SNB indicated that it is ready to intervene in the foreign exchange market if necessary. The bank stated, "With the U.S. reducing tariffs and international developments progressing positively, Switzerland's economic outlook has become somewhat more favorable."

March 2024 and Inflation Targets

It should be noted that the SNB was the first central bank to lower interest rates in March 2024 to counter Covid-19-related inflationary pressures.

Swiss Economy and Inflation

As of November, Switzerland is one of the countries with the lowest annual inflation rates among major economies at 0%. The bank has set its inflation target between 0 and 2%. However, the Swiss economy contracted by 0.5% in the third quarter.