Swiss National Bank leaves policy rate unchanged but lifts long-term inflation outlook to 0.7% for 2028 amid global price pressures.
The Swiss National Bank kept its policy rate steady at 0% following its June meeting, aligning with market expectations. The decision comes as the central bank raised its inflation forecasts for 2027 and 2028 to 0.6% and 0.7%, respectively, up from previous projections of 0.5% and 0.6%. GDP growth for 2026 remains unchanged at around 1%.
The SNB noted that global inflation is expected to stay elevated due to higher raw material prices, while short-term economic growth may moderate. The bank reiterated its commitment to adjusting policy if needed to maintain price stability. Prior to the decision, markets had priced in no change, with focus on the bank’s updated economic outlook.
The Swiss Franc weakened slightly after the announcement, pushing the USD/CHF pair above 0.8000. However, broader USD softness kept the pair below its recent highs. Attention now turns to the post-meeting press conference for further guidance on policy direction.