SNB Maintains Key Policy Rate Amid Rising Inflationary Pressures

The Swiss National Bank has left its key policy rate unchanged at 0%, maintaining its stance despite a modest increase in inflation. This decision was widely expected, as the bank noted that higher energy prices were primarily responsible for the rise in inflation, with medium-term pressures increasing only slightly.

The SNB emphasized that monetary policy is still on track to keep inflation within the target range and support economic growth. According to its conditional inflation forecast, Switzerland's inflation will continue to rise modestly in the fourth quarter before declining again in 2027.

The bank also acknowledged the uncertainty surrounding global energy markets due to the ongoing conflict in the Middle East, which has led to increased inflationary pressures worldwide. The SNB expects moderate growth in the global economy over the coming quarters and forecasts growth of between 1.5% and 2% for this year and 1.5% in 2027.