SNB Stays Put on Interest Rates as Inflation Risks Persist
Swiss stocks declined on Thursday as the Swiss National Bank (SNB) maintained its policy rate at 0% and warned that inflation risks have not dissipated.
The SNB's decision was expected, but its tone was slightly firmer than anticipated. Chairman Martin Schlegel stated that inflation has risen since June due to higher energy prices, although Switzerland's 0.8% rate remains relatively low by international standards.
The central bank also raised its conditional inflation projections for 2026-2028, citing global uncertainty linked to the war in the Middle East and shifting trade policies. However, the SNB emphasized that these forecasts assume the policy rate will remain at 0%, within its 0%-2% price-stability range.
In other company news, Novartis rose 1.16% after a US district judge dismissed a patent-related lawsuit tied to its heart-failure drug Entresto.