The Swiss National Bank (SNB) has decided to keep its key interest rate at 0% as anticipated. This rate applies to banks' sight deposits at the central bank up to a specified threshold, with the discount for deposits exceeding this threshold remaining at 0.25 percentage points. Since March 2024, the SNB has reduced its key rate by 175 basis points and had previously exited its negative interest rate policy in 2022 after maintaining it for over seven years.
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The SNB indicated its readiness to engage in foreign exchange market activities as needed to maintain suitable monetary conditions. It forecasts inflation to average 0.7% for this year and 0.8% for 2027 and 2028. Additionally, the bank expects moderate economic growth in the upcoming quarters, projecting growth between 1.5% and 2% for this year and approximately 1.5% in 2027.