Switzerland Keeps Interest Rate at Record Low Amid Global Rises

The Swiss National Bank has kept its key interest rate at 0% for over a year, making borrowing money cheap and bank savings earn little to no interest. This rate is unusually low globally.

This decision was made due to Switzerland's strong financial position, with low inflation, public debt, and a stable currency. According to Caroline Hilb, head of investment and pension provision at Raiffeisen Bank, the country's history of debt discipline and its 'debt brake' mechanism are also contributing factors.

The ECB has set an interest rate of 2.25%, while the US rate ranges between 3.5% and 3.75%. The ECB is expected to raise its rate at its next meeting on September 10, but the Federal Reserve's decision remains uncertain due to vague statements and historical patterns.