Swiss National Bank holds rates steady in December review
The SNB maintained its key policy rate at 1.25% as inflation remains within target, citing stable growth and cautious global conditions.
The Swiss National Bank left its benchmark interest rate unchanged at 1.25% on Thursday, as widely expected, following its quarterly monetary policy assessment.
In a statement, the SNB noted that Swiss inflation remains within the 0-2% target range, with core inflation at 1.3% in November. The central bank highlighted stable domestic economic growth and a cautious outlook for the global economy, citing geopolitical risks and uneven recovery prospects.
The decision aligns with market expectations, with the SNB reiterating its data-dependent approach to policy adjustments. The bank also maintained its forecast for Swiss GDP growth at around 1.0% for 2025, unchanged from its September projection.
The SNB’s foreign exchange reserves stood at 949 billion Swiss francs as of November 30, reflecting continued intervention to mitigate appreciation pressure on the franc. The central bank emphasized its readiness to respond to exchange rate movements to ensure price stability.
Swiss 10-year government bond yields edged higher following the announcement, while the Swiss franc strengthened modestly against the euro and the U.S. dollar.
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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