The Swiss National Bank (SNB) has reduced its key interest rate to 0% while planning to continue interventions in the forex market to control inflation. This decision was largely anticipated by investors, as there was an 81% consensus prior to its announcement.
In a recent development, the US Treasury placed Switzerland on a currency manipulation watchlist, which could result in potential 31% tariffs. However, SNB Chairman Martin Schlegel denied manipulation intentions, stating that interventions are solely aimed at maintaining price stability.
The SNB revised its inflation forecasts, predicting only 0.2% average inflation for 2025 and 0.5% for 2026. Despite the lower rates, the Swiss franc remains resilient against the US dollar, indicating robust support from the SNB in the face of deflationary pressures.
Leave a Reply