Swiss National Bank Holds Key Rate Amid Tariff Concerns

The Swiss National Bank maintained its interest rate at zero, influenced by considerations of U.S. tariffs' effects on Switzerland's economy. This decision marks the first time in seven meetings the SNB has not adjusted rates, following a recent inflation increase and rate reductions earlier this year.

The Swiss National Bank (SNB) has opted to keep its key interest rate at zero, making it the lowest among major central banks worldwide. This cautious decision comes as the SNB considers the potential impact of U.S. President Donald Trump's tariffs on the Swiss economy.

While this move was anticipated by market analysts and a Reuters poll, it signifies a notable pause in the Bank's policy direction. The SNB chose to hold rates steady following a slight rise in inflation over recent months.

Notably, this decision ends a streak of six consecutive meetings with rate cuts, which began when the Bank started reducing borrowing costs in March 2024, aiming to stimulate the economy amidst global uncertainties.

(With inputs from agencies.)