SNB Watches a Firm Franc After December's Rate Cut

ZURICH - The Swiss National Bank entered 2025 with the policy rate at 0.5 percent, after the cut decided in December. Inflation had already slipped, helped by lower electricity prices. Exporters on the plateau still complained that the franc made German and Italian invoices look cheap.

Sight deposits at the SNB continued to be paid the policy rate up to a threshold and zero above it. The bank repeated that it remains willing to act in the foreign exchange market if needed.

March is the next appointment

Markets priced another look in March. For the capital argument around UBS, the rate is background noise. For machine builders in Aargau, it is the year.