Swiss National Bank Stands Pat on Rates Amid Inflation Pressures

The Swiss National Bank (SNB) made its expected decision to keep interest rates unchanged at 0%, despite rising inflation caused by the war in the Middle East. This rate has been maintained since June 2025, making it the lowest among major central banks.

In a statement, the SNB said that medium-term inflationary pressure has increased only slightly, and monetary policy is adequate to keep inflation within its target range of 0%-2%, which it considers price stability. This decision contrasts with other central banks, such as the European Central Bank, which raised rates earlier this month.

The SNB also expressed willingness to intervene in foreign exchange markets if necessary to ensure appropriate monetary conditions. The Swiss franc has weakened against the euro and dollar in recent weeks but only slightly after the decision. It now trades roughly flat against these currencies.