Swiss National Bank Holds Steady Amid Inflation Concerns and Tariff Agreement

The Swiss National Bank held its interest rate at 0%, amid low inflation and a recent U.S. tariff reduction on Swiss goods. With economic growth slowing and inflation at 0%, the policy aims to stabilize the economy. The unchanged rate follows a U.S. Federal Reserve rate cut.

The Swiss National Bank (SNB) maintained its policy interest rate at 0% on Thursday, a move that aligns with market and analyst expectations. This decision comes as the bank assesses the effects of a U.S. agreement to reduce tariffs on Swiss goods and ongoing low inflation levels.

Switzerland's economy faces challenges, having contracted by 0.5% in the third quarter. Inflation has reached 0%, the lowest end of the SNB's target range. "Inflation in recent months has been slightly lower than expected," the SNB stated.

The decision followed a recent rate cut by the U.S. Federal Reserve and a significant tariff deal with Washington, which lowered tariffs on Swiss goods to 15% from 39%. Analysts suggest that the reduction may ease the economic strain, particularly for key Swiss exports.

(With inputs from agencies.)