SNB leaves interest rates unchanged at 0.00% as expected in December

SNB Holds Rates Steady at 0.00%

The Swiss National Bank (SNB) has left interest rates unchanged at 0.00% in December, aligning with market expectations. This move indicates the SNB's readiness to be active in the foreign exchange market as necessary.

Inflation and GDP Forecasts

SNB's inflation forecast for 2025 remains at 0.2%, unchanged from the previous assessment, while the 2026 forecast has been downgraded from 0.5% to 0.3%. The 2025 GDP forecast is now projected at around 1.5%, up from a prior estimate of 1.0-1.5%, while 2026 remains at 1.0%. This suggests the SNB sees inflationary pressures as virtually unchanged.

Impact on the Market

The decision to maintain rates suggests a lack of bearish sentiment towards the Swiss Franc, although willingness to intervene in the forex market implies that future movements could be influenced by external factors.