The Swiss National Bank (SNB) announced on Thursday its decision to leave its policy rate unchanged at 1.75% for the second consecutive time.
Although the financial authority marked as positive the "slight" decrease in national inflation which registered its lowest level since January 2022 in November, it also stressed that consumer prices could rise in the coming months "due to higher electricity prices and rents, as well as the rise in VAT." The SNB noted that further adjustments to monetary policy, as well as an intervention to foreign exchange markets will happen if needed.
Regarding the inflation forecast, the bank lowered its prediction for Switzerland's annual inflation rate to 2.1% for 2023, 1.9% for 2024 and 1.6% for 2025. For global economic growth, it said the outlook remains "subdued."
