FX.co ★ Switzerland Central Bank Keeps Rate Unchanged

The Swiss National Bank kept its benchmark rate unchanged, as widely expected, on Thursday.

The SNB Governing Board, chaired by Thomas Jordan, decided to hold the policy rate at 1.75 percent.

Banks' sight deposits held at the SNB were remunerated at the SNB policy rate up to a certain threshold, and at 1.25 percent above this threshold, the bank said.

The bank repeated that it is willing to be active in the foreign exchange market as necessary.

The bank trimmed its inflation forecast for the entire horizon. Inflation for 2023 was projected at 2.1 percent, down from 2.2 percent estimated in September.

The outlook for 2024 was downgraded to 1.9 percent from 2.2 percent. Inflation is seen at 1.6 percent in 2025 compared to the previous estimate of 1.9 percent.

The bank said the domestic economy will grow around 1 percent this year. For 2024, the SNB forecast growth of between 0.5 percent and 1 percent.