Swiss central bank holds rates at 0%, readies franc intervention
What's new: Swiss inflation rose to 0.6% in May from 0.1% in February, driven by higher energy prices tied to the Iran conflict.
Switzerland's central bank kept its main policy rate at 0% on Thursday and signaled it is ready to step into foreign exchange markets if safe-haven demand pushes the franc sharply higher. The Swiss National Bank said inflation has picked up since its last review but remains low, with consumer prices rising 0.6% in May after 0.1% in February, partly because of higher energy costs linked to the Iran conflict. Chairman Martin Schlegel said pressure on the franc surged after the Middle East conflict broke out on Feb. 28, then eased. The SNB said Swiss growth has stayed resilient and forecast output of about 1% in 2026 and 1.5% next year, while warning that global risks, including U.S. trade policy and Middle East uncertainty, still cloud the outlook.