The Swiss National Bank (SNB) decided to keep its interest rate at zero percent (0.00%), unchanged from expectations, at its meeting earlier today, Thursday, December 11. This marks the second consecutive meeting where the rate remains unchanged, following six consecutive rate cuts. The bank also announced its readiness to intervene in the foreign exchange market if necessary.

In its policy statement, the SNB indicated that inflationary pressures remain unchanged compared to its last monetary policy assessment. The bank stated that monetary policy is helping to keep inflation within a range consistent with price stability and supporting economic growth. The bank will continue to monitor the situation and adjust monetary policy as needed to ensure price stability.

Inflation has seen a slight decline in recent months, falling from 0.2% in August to 0.0% in November since the last monetary policy assessment. This decrease is attributed to lower inflation in the hotel, rental, and clothing sectors. Average annual inflation is projected to be 0.2% for the year as a whole, 0.3% next year, and 0.7% in 2027.

Economic growth was weak in the third quarter, with GDP contracting due to major fluctuations in the pharmaceutical industry. However, the growth outlook has improved as a result of lower tariffs. The economy is now expected to grow by slightly less than 1.5% this year and around 1% next year.