The Swiss National Bank is expected to keep interest rates at 0% despite weak inflation and GDP growth, citing high barriers to negative interest rates. After limited interventions in 2024, the Swiss National Bank remains willing to use foreign currency purchases to manage disinflation with steady growth expected until 2026, research analysts at Nomura report.
It held at 0.00% despite lower inflation and lower GDP
“We expect the SNB to leave interest rates unchanged at 0.00% at its meeting on December 11.”
“The latest inflation and GDP growth data have been weak. However, we expect the SNB to expect inflation to rise again and GDP growth to continue in 2026, so a rate cut will likely not be needed, especially since the negative interest rate barrier is high.”
“The Swiss National Bank purchased CHF5.1 billion in foreign currency in the second quarter after limited interventions in 2024, indicating that it remains willing to use this policy tool to curb inflation.”
