Switzerland’s central bank kept its key interest rate at 0% on Thursday, diverging from the European Central Bank, the U.S. Federal Reserve and the Bank of Japan, which have all begun raising rates to combat inflation. Switzerland’s annual inflation rate stood at 0.8% in August, well below the levels seen among its major trading partners. Markets are now pricing near 50-50 odds of a first hike in December and more than 90% chance by early 2027, with the key rate expected to reach at least 0.75% by next September. The Swiss franc’s safe-haven status helps keep inflation in check by making imports more expensive and putting deflationary pressure on the economy.
Source: Read the original article
