Swiss National Bank Holds Steady Amid US Tariffs Challenge
The Swiss National Bank (SNB) retains its 0% interest rate amid US tariff challenges. This marks a pause after multiple cuts since March 2024. The tariffs threaten Switzerland's economy, a key exporter to the US, amid stable inflation. SNB cites price stability and economic support as its goals.
The Swiss National Bank (SNB) opted to retain its key interest rate at zero percent on Thursday, a stance unique among major central banks as the institution navigates potential economic fallout from U.S. tariffs. This decision aligns with market expectations and marks a pause after several reductions in borrowing costs since March 2024.
SNB Chairman Martin Schlegel has emphasized that there are significant barriers before considering the reimplementation of a negative interest rate policy. Such a policy, last used from December 2014 to September 2022, previously drew criticism from savers and pension funds.
Despite a slight uptick in inflation recently, the SNB stated, "Inflationary pressure is virtually unchanged compared to the previous quarter." The recent monetary policy decision comes after President Trump's 39% import duty on Swiss goods, a move that poses a significant threat to Switzerland's heavily export-dependent economy.
(With inputs from agencies.)
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