The SNB Holds a Rate Halt
Published: Thursday, Sep 21st 2023, 09:40
Aktualisiert am: Freitag, 13. Oktober 2023, 14:12
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The Swiss National Bank (SNB) has decided to keep its interest rate at 1.75%, following five consecutive rate hikes. This pause in rate hikes is not a sign of relief, however, as the SNB is still concerned about inflationary pressure. Inflation in Switzerland has dropped slightly to 1.6%, but the SNB is still monitoring the situation closely and is prepared to take further action if necessary to ensure price stability in the medium term. The recent drop in inflation is mainly due to lower prices for imported goods and services, but SNB President Thomas Jordan warned that rising rents and energy prices could cause inflation to rise again in the coming months. The SNB is focused on ensuring price stability and is prepared to tighten its monetary policy further if needed to keep inflation below 2%. The SNB's decision contrasts with the US Federal Reserve, which extended its pause on rate hikes, and the European Central Bank, which raised its interest rates by 25 basis points last week. The SNB is also prepared to intervene in the foreign exchange market if necessary, with a focus on selling foreign currencies.
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