The move comes on a busy day of central bank action in Europe, with the Bank of England, European Central Bank and Norges Bank announcing whether they will amend their own rates.
ADVERTISEMENTThe Swiss National Bank (SNB) has once again decided to leave its policy interest rate unchanged at 1.75%, as analysts expected, citing easing inflationary pressure yet lingering unpredictability in the global economy.
The lender said in a statement on Thursday morning that global economic growth was stronger than expected in the third quarter of the year, contributing to its decision to refrain from any further monetary policy tightening for the time being.
"Uncertainty remains high," the SNB nevertheless warned, adding that it would adjust its policy as necessary to keep inflation under control.
Inflation in Switzerland stood at 1.4% in November - below its 2% target - which the central bank attributed to lower inflation on goods and tourism.
"However, inflation is likely to increase again somewhat in the coming months due to higher electricity prices and rents, as well as the rise in VAT," the SNB said.
It also warned that growth in the global economy for the coming quarters would remain subdued - as well as that of Switzerland itself - despite a probable ease in inflationary pressure.
The news comes ahead of more European central banks announcing their own interest rate decisions today, as inflation continues to buffet the continent.
The Bank of England is expected to leave its rate at 5.25% for the third time in a row while it tries to get to grips with the highest inflation rate seen in the G7 (4.6%). The European Central Bank is also likely to hold fast at 4%, after Norges Bank announced shortly after the SNB that it would raise its policy rate from 4.25% to 4.5%.
Across the Atlantic, the US Federal Reserve announced that it was holding rates steady last night, maintaining the range between 5.25% and 5.5%.
