SNB Keeps Rates Unchanged as Inflation Pressures Grow

The Swiss National Bank (SNB) has left its key policy rate unchanged at 0% despite rising inflation. The decision was in line with expectations, but analysts are watching closely as inflationary pressures continue to grow.

According to the SNB, the modest increase in inflation is primarily due to higher energy prices. However, medium-term inflationary pressures have only increased 'slightly'. The bank's conditional inflation forecast suggests that inflation will rise moderately in the fourth quarter before declining again over 2027.

The SNB also noted that global economic growth is expected to be moderate in the coming quarters, with elevated inflation likely to persist. Additionally, the bank highlighted ongoing uncertainty due to the situation in the Middle East and the trade policy environment.