SNB holds rates steady at 1.75% in June assessment
Swiss National Bank leaves key policy rate unchanged as inflation remains within target range, citing cautious growth outlook.
The Swiss National Bank (SNB) maintained its benchmark interest rate at 1.75% on Thursday, as widely expected, following its quarterly monetary policy assessment.
In a statement, the SNB said inflation in Switzerland remains within the target range of 0-2%, with no immediate pressure for further tightening. The central bank noted that while economic growth has been resilient, risks to the outlook remain tilted to the downside amid global uncertainties.
The decision aligns with recent guidance from policymakers, who have emphasized a data-dependent approach to policy adjustments. The SNB’s inflation forecast for 2025 remains unchanged at 1.4%, while GDP growth is projected at 1.5% for the year.
The Swiss franc strengthened modestly against major peers following the announcement, reflecting market expectations of continued cautious policy stance. The SNB reiterated its commitment to intervening in foreign exchange markets if necessary to ensure price stability.
Analysts suggest the central bank is likely to maintain rates at current levels through the remainder of 2025, barring a significant shift in inflation or growth dynamics.
Elena covers macroeconomic data and policy across the eurozone, translating industrial output, inflation and growth figures into what they mean for markets.
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