SNB Holds Rates Steady as Markets Watch U.S. Jobless Claims

SNB holds rates at 0.00% as inflation remains subdued; markets await U.S. jobless claims for fresh insight into labor-market conditions.

The Swiss National Bank kept its policy rate unchanged at 0.00% during the European session today, maintaining its cautious stance despite several months of disappointing inflation data. Policymakers reiterated that returning to a negative interest rate environment remains highly unlikely unless Switzerland faces a severe downturn, such as a global recession or outright domestic deflation.

SNB Holds Rates Steady as Markets Watch U.S. Jobless Claims

SNB Chairman Thomas Schlegel emphasized that the central bank expects inflation to rise modestly in the coming months, downplaying the need for additional stimulus. Officials made clear that any shift back into NIRP would require overwhelming justification, which they do not currently see.

In a development supportive of Switzerland’s economic outlook, the government finalized an agreement with the United States to reduce tariffs on Swiss goods from 39% to 15%. Economists say the cut could provide a meaningful boost to exporters and add some momentum to overall growth.

During the American session, attention will turn to U.S. labor data, with fresh Jobless Claims figures due. Economists project that Initial Claims will rise to 220,000 from 191,000, and they forecast Continuing Claims at 1.947 million, slightly above last week’s figure. Recent data continues to show a labor market defined by “low firing, low hiring,” a dynamic that Federal Reserve Chair Jerome Powell described as unusual in his remarks yesterday. The Fed aims to support demand enough to shift the economy toward “low firing, higher hiring” without fueling inflation.

Upcoming central bank appearances:

As markets digest the SNB decision and look ahead to U.S. data, attention will also turn to scheduled central bank appearances. The SNB Press Conference is set for 09:00 GMT / 04:00 ET, followed by remarks from Bank of England Governor Andrew Bailey at 10:00 GMT / 05:00 ET.

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