Swiss Central Bank Maintains Key Rate
(RTTNews) - The Swiss National Bank retained its key interest rate at zero percent as medium-term inflationary pressure increased only slightly since June.
Policymakers assessed that the monetary policy is appropriate to keep inflation within the range consistent with price stability and supports economic development.
The SNB had lowered its key rate by 175 basis points since March 2024. The bank exited its negative rate in 2022 after holding it steady for over seven years.
At the quarterly meeting, the SNB said it is willing to be active in the foreign exchange market as necessary to ensure appropriate monetary conditions.
The bank forecast inflation to rise somewhat in the fourth quarter, before easing again over the course of 2027 with the expected fall in energy inflation from the current elevated level.
The near-term inflation outlook was revised up citing higher-than-expected prices for oil products. The bank expects inflation to average 0.7 percent this year, which was slightly up from 0.6 percent estimated in June.
Likewise, the outlook for 2027 was lifted to 0.8 percent from 0.6 percent. Inflation for 2028 was also estimated at 0.8 percent compared to the prior forecast of 0.7 percent.
The SNB projected moderate economic growth for the coming quarters. Growth is seen between 1.5 percent and 2 percent this year and around 1.5 percent in 2027.
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