Swiss Central Bank Keeps Rate Unchanged

(RTTNews) - The Swiss National Bank retained its key interest rate at zero percent, as widely expected, on Thursday.

Banks' sight deposits held at the central bank will be remunerated at the SNB policy rate up to a certain threshold, the bank said. The discount for sight deposits above this threshold was unchanged at 0.25 percentage points.

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.

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 average 0.7 percent this year and 0.8 percent each in 2027 and 2028.

The SNB expects 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.