SNB to keep interest rates at 0% on June 18 and for rest of year

SNB to keep interest rates at 0% on June 18 and for rest of year – Reuters poll

Economists Predicting 0% Rate

Total number of economists surveyed predicting the SNB will keep its interest rate at 0%.

Economists Expecting Rate Stability

Number of economists forecasting that rates will remain at 0% for the entire year of 2023.

Future Rate Increases Expected

Number of economists anticipating one or two quarter-point rate increases in 2027.

§ 01 Executive Snapshot

What: The Swiss National Bank (SNB) is expected to maintain its interest rate at 0% for the remainder of 2023.
Who: Swiss National Bank (SNB) and 35 economists surveyed.
Why it matters: Keeping the interest rates at 0% reflects the SNB's approach to ensuring price stability and managing inflation in Switzerland.

All 35 economists in a Reuters poll predicted the SNB would keep its policy rate at 0% on June 18.
28 economists forecast that the SNB will maintain the 0% rate for the entire year of 2023.
Only four economists anticipate one or two quarter-point rate increases in 2027.

The SNB's mandate is to ensure price stability, defined as a rise in the Swiss Consumer Price Index of less than 2% per year.
Historically, the SNB has intervened in the foreign exchange market to prevent excessive appreciation of the Swiss Franc, which could harm exports.

Maintaining a 0% interest rate may lead to continued weakness in the Swiss Franc, impacting its attractiveness to foreign investors.
The decision indicates a cautious approach towards inflation management, allowing for stability in monetary conditions amidst global economic uncertainties.

Potential risk of inflation rising above the target, which could force the SNB to reconsider its low-interest rate policy.
Dependence on foreign exchange reserves for market interventions may limit the SNB's flexibility in monetary policy.

The SNB conducts quarterly meetings to assess monetary policy, with the next meeting scheduled for September 2023.
Future developments in inflation trends and economic conditions will signal whether the SNB will adjust its interest rate policy beyond 2023.

§ 07

What is the current interest rate set by the Swiss National Bank?

The Swiss National Bank is expected to maintain its interest rate at 0% for the remainder of 2023.

Why is the SNB keeping interest rates at 0%?

Keeping the interest rates at 0% reflects the SNB's approach to ensuring price stability and managing inflation in Switzerland.

Who conducted the survey predicting the SNB's interest rate decision?

The survey was conducted among 35 economists.

When will the SNB next assess its monetary policy?

The SNB conducts quarterly meetings to assess monetary policy, with the next meeting scheduled for September 2023.