He Swiss National Bank It kept its official interest rate unchanged on Thursday, as the central bank considered the impact of the recent agreement to reduce interest rates. US tariffs on Swiss productsas well as low inflation.
The BNS kept its interest rate at 0%the lowest among the main central banks, for the second consecutive meeting, a decision expected by markets and analysts surveyed by Reuters.
The decision occurs in a context of atony of the swiss economywhich contracted 0.5% in the third quarter, and after inflation fell to 0% in November, the lower limit of the SNB’s 0-2% target range.
“Inflation in recent months has been slightly lower than expected. In the medium term, however, inflationary pressure remains practically unchanged compared to the last monetary policy assessment,” the SNB said in a statement.
The latest decision by the SNB came after the Federal Reserve American on Wednesday.
It was also the Swiss central bank’s first monetary policy meeting since Switzerland reached an agreement with Washington in November that reduced additional US tariffs on Swiss products to 15% from the 39% initially imposed.
Tariffs have hurt economic growth at a time when the strength of the Swiss franc, fueled by safe haven flows during trade turmoil, put downward pressure on inflation by making imports cheaper.
Analysts affirm that the reduction in tariffs will reduce the economic damage for Switzerlandwhich was facing exclusion from one of its largest markets for watches, chocolate and machinery.
