The Swiss National Bank (SNB) is taking a break from interest rates.
After five consecutive interest rate increases, the key interest rate will remain at 1.75 percent, like the
announced on Thursday.
Which has been significantly tightened over the last few quarters monetary policy counteracts the inflationary pressure that is still present, the SNB said on Thursday. From today’s perspective, however, it cannot be ruled out that further monetary policy tightening will be necessary to ensure price stability in the medium term.
In order to ensure appropriate monetary conditions, the National Bank is also still prepared to be active in the foreign exchange market if necessary. In the current environment, the focus is on foreign exchange sales, according to previous statements.
In June 2022, the SNB tightened the interest rate screw slightly for the first time in fifteen years with a step of half a percentage point, followed by four further interest rate increases by June.
Inflation in Switzerland has fallen slightly since the SNB’s last monetary policy assessment in June. Most recently, at 1.6 percent, it was back within the SNB target range of 0 to 2 percent.
The most important central banks abroad have recently made different decisions. While the US Federal Reserve kept its interest rates stable on Wednesday evening, the European Central Bank (ECB) increased its key interest rates by a further 25 basis points last week.