Swiss National Bank leaves key rate on hold

(Sharecast News) - The Swiss National Bank left its core policy interest rate unchanged on Thursday, as widely expected. Switzerland's central bank left the interest rate at 0%, one of the lowest across major economies, against a backdrop of persistently low inflation.

The bank said inflation in recent months had been "slightly lower than expected". Inflation eased to 0% in November from 0.2% in August.

However, it continued: "Although the conditional inflation forecast is somewhat lower in the short term than in September, there is only little change in the medium term."

The SNB is forecasting average inflation of 0.2% for the current year, rising to 0.3% in 2026 and 0.6% in 2027.

The bank's target range for inflation is 0% to 2%.

The Swiss economy remains sluggish, contracting 0.5% in the third quarter. The SNB is forecasting GDP growth of just under 1.5% this year followed by 1% in 2026.

The SNB said: "Global economic growth was stronger-than-expected in the third quarter.

"Although US tariffs and trade policy uncertainty weighed on the global economy, economic development in many countries has thus far remained more resilient than had been assumed.

"In its baseline scenario, the SNB anticipates that growth in the global economy will be moderate over the company quarters."