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2h ago

SNB Holds Rate at 0% as U.S. Tariffs Cloud Outlook

The central bank calls U.S. duties a major challenge, trimming its 2026 growth view to just under 1%.

View of the headquarters of the Swiss National Bank (SNB) before the rate decision press conference in Zurich, Switzerland, June 19, 2025. REUTERS/Denis Balibouse/File Photo
The Swiss National Bank said the country's economic outlook 'has deteriorated due to significantly higher US tariffs'

Overview

  • Thursday’s decision marks the first pause after seven consecutive cuts since March 2024, in line with market expectations.
  • Officials say inflationary pressure is virtually unchanged after a recent uptick, with policy keeping inflation within the price-stability range.
  • The zero policy rate remains the lowest among major central banks.
  • Chairman Martin Schlegel reiterates high hurdles to reintroducing negative rates given past concerns from savers and pension funds.
  • The bank warns the 39% U.S. import levy will hit machinery and watchmaking exporters and says it stands ready to adjust policy and intervene in foreign exchange if needed.