SNB Breaks Rate Hike Streak, Surprises with Unchanged Rates

The Swiss National Bank (SNB) has decided to keep interest rates unchanged at its quarterly monetary policy meeting, ending its streak of five consecutive rate hikes. The SNB had been gradually lifting rates out of negative territory since June 2022 but cited the significant tightening of monetary policy and subdued growth outlook as reasons for maintaining the current rate of 1.75%. Inflation in Switzerland remains below the central bank's 2% target, and the Swiss franc has been performing strongly. The SNB indicated that further tightening may be necessary in the future to ensure price stability. The main risk to the Swiss economy is a potential global economic slowdown, and the SNB expects the economy to grow by around 1% this year.