Swiss Franc Holds Firm

2026-03-19 09:31 By Luisa Carvalho 1 min. read

The Swiss franc traded around 0.79 per USD, nearing the highest since 2011, supported by safe-haven demand amid geopolitical tensions and a steady policy stance.

The Swiss National Bank left its benchmark at 0% for the third consecutive meeting, as widely anticipated, with policymakers signaling their increasingly readiness to intervene in foreign exchange market to prevent excessive currency appreciation and safeguard price stability.

Annual inflation held at 0.1% for the third month in February, at the bottom of the SNB's 0%-2% target, but it remains in line with the central bank's forecasts.

The SNB predicted that the current increase in energy prices will push inflation up more rapidly in the coming quarters, averaging 0.5% in 2026 and 2027, and 0.6% in 2028.

After a mild recovery in Q4, the economy is forecast to grow around 1% in 2026, but the central bank highlighted a significantly more uncertain outlook.



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