Euro Surges Against Swiss Franc as SNB Keeps Interest Rate Unchanged

The Euro jumped against the Swiss Franc after the Swiss National Bank decided to leave its key interest rate unchanged at 0%.

SNB Chair Martin Schlegel noted that the recent depreciation of the Swiss Franc partly reflects widening interest rate differentials with other currency areas, making the currency less attractive compared with the Euro and the US Dollar.

The SNB also slightly raised its inflation forecasts, expecting price growth of 0.7% this year and 0.8% in both 2027 and 2028, but maintained a cautious stance on the economic outlook due to global developments.

In related news, German business sentiment improved more than expected in September, with the IFO Business Climate Index rising to 89.9 from 88.8 in August, providing additional support to the Euro.