Swiss Inflation Stability Fuels Interest Rate Freeze Speculation

Swiss inflation levels remained steady in August, according to government data released on Thursday, prompting speculation that the Swiss National Bank (SNB) will maintain its interest rate at zero later this month.

Consumer prices increased by 0.2% compared to a year prior, aligning with the SNB's long-term stability target. The rise remained unchanged from July figures, signaling stable inflation trends. This reduces the pressure on the Central Bank to alter its policy following its decision to cut the rate to zero in June to address deflationary concerns.

Despite current economic uncertainties and U.S. tariffs on Swiss imports, moderate economic growth suggests no immediate need for rate cuts, with the SNB likely to keep rates at their current level for the foreseeable future.

(With inputs from agencies.)