The Swiss National Bank (SNB) has reported that the Swiss credit market remains resilient despite the collapse of Credit Suisse. During a recent discussion with the Federal Council, SNB Governing Board President Martin Schlegel and Bank Council President Barbara Janom Steiner highlighted the continued growth in domestic lending volume over the past decade, with no signs of a credit crunch.
The SNB also assessed the risks from financial intermediaries outside the banking sector, such as investment funds, as limited, while acknowledging their significance to the Swiss financial system. The central bank confirmed its growth forecasts for the Swiss economy, expecting between 1.5 and 2 percent this year and around 1.5 percent for 2027, aligning with its September projections.
Inflation in Switzerland has risen sharply from 0.6 percent in May to 1.5 percent in October, primarily due to higher petroleum product prices following the escalation in the Middle East. However, inflation remains low compared to other countries and stays within the SNB's target range of zero to two percent. The National Bank anticipates moderate global economic growth in the coming quarters, citing risks such as rising energy prices, trade policy, and exchange rate developments.
In September, the SNB maintained its key interest rate at zero percent and reiterated its readiness to intervene in the foreign exchange market to ensure appropriate monetary conditions.