Swiss National Bank Holds Key Rate As Expected

(RTTNews) - The Swiss National Bank left its policy rate unchanged at zero percent, as widely expected, and maintained its inflation outlook.

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

The bank had reduced the key rate by 175 basis points since March 2024. The bank exited its negative rate in 2022 after holding it for over seven years.

The SNB reiterated that it remains willing to be active in the foreign exchange market as necessary.

Although inflation rose slightly since the last meeting, the bank retained its inflation outlook. Inflation is projected at 0.2 percent this year, 0.5 percent in 2026 and 0.7 percent in 2027.