SNB left its policy rate unchanged at 0.00%, as widely expected, and reiterated its readiness to intervene in foreign exchange markets if necessary. The hold reflects the bank’s assessment that current conditions do not justify a shift, even as inflation undershot expectations.
In its statement, the SNB noted that inflation has been slightly weaker than anticipated in recent months, but emphasized that medium-term pressures are “virtually unchanged” compared with September. The conditional inflation forecast is marginally lower in the near term but shows little change beyond that. The Bank now sees inflation averaging 0.2% in 2025, 0.3% in 2026 and 0.6% in 2027, based on the assumption of a 0% policy rate throughout the forecast horizon.
The economic outlook for Switzerland has “improved slightly”, helped by reduced U.S. tariffs and a modestly better global backdrop. SNB now expects GDP to grow just under 1.5% in 2025 and around 1% in 2026, though it cautioned that unemployment is likely to edge higher.
