Swiss National Bank minutes show policymakers see stable inflation but warn of short-term risks from Middle East conflict.
The Swiss National Bank left monetary policy unchanged at its June meeting, citing stable inflation pressures and appropriate monetary conditions. Policymakers noted little overall change in inflation dynamics but highlighted elevated short-term risks due to geopolitical tensions, particularly the conflict in the Middle East.
Minutes revealed the SNB sees no immediate need for policy adjustments, though officials emphasized readiness to intervene if conditions worsen. Inflation risks were assessed as virtually unchanged since the prior meeting, with energy costs and broader uncertainty cited as key concerns. Business surveys indicated resilient economic activity in Switzerland.
The central bank underscored the potential for further volatility in commodity markets and inflation if geopolitical tensions escalate. While maintaining a flexible stance, the SNB continues to monitor incoming data closely.