Swiss National Bank Holds Steady Amid U.S. Tariff Challenges

The Swiss National Bank (SNB) has decided to keep its key interest rate at zero percent in a move aimed at navigating the economic implications of U.S. tariffs imposed by President Donald Trump. These tariffs have created a challenging environment for the Swiss economy as it looks towards 2026.

According to SNB Chairman Martin Schlegel, maintaining the current interest rate is crucial amidst potential economic downturns spurred by the heightened tariffs on Swiss exports. The U.S. tariffs mainly target machinery and watchmaking industries, overshadowing growth prospects for Switzerland, which is expected to see growth just under 1%.

The SNB's decision aligns with that of the European Central Bank, which also kept its rates unchanged. Analysts noted that the Swiss franc's stability against the euro contributed to the decision to maintain rates. Economist GianLuigi Mandruzzato emphasized the return of inflation within the SNB's target range, indicating a moderate growth trajectory for the Swiss economy.

(With inputs from agencies.)