ZURICH, March 19 - The Swiss National Bank (SNB) kept its policy rate at 0% on Thursday, maintaining the benchmark at the lowest level among major central banks. The decision came as the Swiss franc strengthened sharply amid heightened geopolitical tensions in the Middle East and a related jump in global oil prices that has muddied the outlook for inflation.
The pause in policy was anticipated by a wide majority of analysts polled. The SNB pointed explicitly to the recent conflict when explaining its stance and the steps it is prepared to take in markets. In a statement the bank said: "Given the conflict in the Middle East, the SNB’s willingness to intervene in the foreign exchange market has increased."
The central bank added: "The SNB thereby counters a rapid and excessive appreciation of the Swiss franc, which would jeopardise price stability in Switzerland." That language underscores the SNB's focus on the exchange rate channel as a driver of domestic price pressures at a time when energy-driven inflation risks have risen.
Markets reacted briefly after the announcement. The franc initially softened following the decision, but then climbed back to trade slightly firmer against both the euro and the U.S. dollar, quoted at 0.9082 francs per euro and 0.793 francs per dollar, respectively.
The SNB's move came on a day of multiple central bank updates in which other major policymakers also opted to keep rates unchanged, including the U.S. Federal Reserve the day before. The European Central Bank, the Bank of England and Sweden's central bank were due to deliver their latest assessments on Thursday, with markets positioned for no change to their policy rates.
Separately, commentary included promotion of data and analytics tools for investors, noting that institutional-grade information combined with AI-driven insights can help inform investment decisions, but without guaranteeing outcomes.
The SNB's statement and the market response reflect the interaction of exchange rate moves and energy price shocks in shaping monetary policy considerations when geopolitical events add a layer of uncertainty.