{"id":88610,"date":"2026-06-20T21:06:39","date_gmt":"2026-06-20T21:06:39","guid":{"rendered":"https:\/\/www.europesays.com\/ch\/88610\/"},"modified":"2026-06-20T21:06:39","modified_gmt":"2026-06-20T21:06:39","slug":"swiss-central-bank-holds-interest-rates-with-eye-on-currency-risks-2","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/ch\/88610\/","title":{"rendered":"Swiss central bank holds interest rates, with eye on currency risks"},"content":{"rendered":"

\"The The Swiss National Bank building in Bern (Fabrice COFFRINI) \u00b7 Fabrice COFFRINI\/AFP\/AFP <\/p>\n

Switzerland’s central bank left interest rates unchanged at zero percent on Thursday, a move widely expected by analysts, but said it was watching out for signs of upward pressure on the Swiss franc currency.<\/p>\n

Since the Middle East conflict began at the end of February, “the rise in energy prices has led to higher inflation worldwide”, said Swiss National Bank (SNB) chairman Martin Schlegel.<\/p>\n

However, “the increase in inflation has been smaller in Switzerland than in many other countries”, he told a press conference in the capital Bern.<\/p>\n

“At 0.6 percent, inflation is relatively low by international standards and lies within the range consistent with price stability,” he said, a rate the bank sees as between zero and two percent.<\/p>\n

The central bank predicts that inflation will rise slightly in the coming quarters before declining again.<\/p>\n

The SNB left its growth forecasts unchanged at around one percent for this year and around 1.5 percent in 2027.<\/p>\n

In a statement, it said the Swiss economy had “proved to be resilient” given the conflict in the Middle East.<\/p>\n

Like gold, German bonds or the Japanese yen, the Swiss franc is a major safe-haven asset where investors seek refuge during geopolitical tensions or economic uncertainty.<\/p>\n

Since the war erupted, “upward pressure on the Swiss franc initially increased”, Schlegel said, as investors sought safety, but has since retreated slightly.<\/p>\n

He said interest rates in major currency areas had risen, increasing the difference between Swiss rates and thereby easing upward pressure on the franc.<\/p>\n

“However, the geopolitical situation remains uncertain. The risk of strong upward pressure thus persists,” the bank said.<\/p>\n

Schlegel also said that if necessary, the SNB was increasingly willing to intervene in the foreign exchange market.<\/p>\n

Harry Chambers, an economist at the London-based research group Capital Economics, said he thought the SNB would keep interest rates unchanged “over the next couple of years”.<\/p>\n

The central bank’s attention “is firmly on the exchange rate”, he said.<\/p>\n

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