Swiss National Bank policymaker affirms medium-term inflation pressures remain stable, with rates at 0.00% and forecasts within 0–2% range.
Swiss National Bank policymaker Petra Tschudin stated medium-term inflation pressures are unchanged, reinforcing the view that recent price increases are temporary. The SNB left its policy rate at 0.00% but slightly raised near-term inflation forecasts due to higher energy costs, projecting averages of 0.6% for 2026 and 2027 and 0.7% for 2028.
The central bank’s projections remain within its 0–2% price stability range, emphasizing underlying inflation dynamics have stayed stable despite upward revisions. The SNB softened its language on foreign exchange intervention, shifting from a willingness to act to intervening “if necessary” to curb excessive franc strength.
A stronger franc risks tightening financial conditions by lowering import prices and hurting export competitiveness. Safe-haven demand for the currency persists amid geopolitical tensions, keeping the SNB vigilant on exchange rate movements.