The Swiss National Bank kept its policy rate at 0% for a fifth consecutive
meeting quarterly, raised its inflation outlook and removed prior language
signaling an increased willingness to intervene to weaken the franc. Officials
led by Schlegel said mid‑term price pressures have risen "only slightly" and
implicitly acknowledged the franc’s sharp drop below pre‑Middle East conflict
levels, which has raised import costs and boosted inflation. The decision,
supported by August inflation of 0.8%, underscores policy divergence as the US
and euro area tighten while Switzerland maintains ultra‑low borrowing costs; the
SNB signaled a partially more cautious stance after the franc hit a 17‑month
low versus the euro and its weakest level versus the dollar since June last
year.
