BREAKING: Swiss Central Bank leaves rates unchanged 📌

The Swiss Central Bank left interest rates unchanged as expected.

• Current interest rate: 1.75%; forecast 1.75%; previously 1.75%

SNB comments:

• The SNB is prepared to intervene in the foreign exchange market as needed.
• Inflation in Switzerland has slightly decreased to 1.4% in November, mainly due to lower inflation on goods and tourism services, but is expected to rise again due to higher electricity prices, rents, and VAT increase.
• The forecast predicts average annual inflation at 2.1% for 2023, 1.9% for 2024, and 1.6% for 2025, assuming the policy rate remains at 1.75%.
• Global economic growth was stronger than expected in Q3, with inflation declining in most countries and central banks pausing further monetary policy tightening.
• However, with inflation still above targets, a restrictive monetary policy is anticipated in many countries. The outlook for global and Swiss economies remains subdued and uncertain

Swiss franc is weakening after the decision, but the changes are not significant, and a while later the EURCHF is back around the levels before the decision.

Source: xStation 5