08.01.202609:43:03UTC+00Swiss Franc Remains Firm

The Swiss franc is maintaining a strong position, trading around 0.80 per USD, a level it's held since 2011. This strength is primarily due to its appeal as a safe-haven currency amidst ongoing geopolitical tensions. Concurrently, recent inflation data has alleviated some pressure on the Swiss National Bank (SNB) to consider negative interest rates. In December, the Swiss Consumer Price Index (CPI) remained unchanged month-on-month, contrary to the anticipated 0.1% decrease and following a 0.2% decline in November. On an annual basis, the CPI increased by 0.1%, aligning with forecasts, after a flat reading in November. This pattern suggests that fourth-quarter inflation will meet the SNB's 0.1% projection. The central bank decided to keep its key interest rate at 0% for the second straight meeting in December, after six consecutive quarterly cuts, pointing to improved economic conditions post-agreement to lower U.S. tariffs. Minutes from the December meeting reveal that the SNB considers maintaining the 0% rate appropriate, anticipating a rise in the currently low inflation towards its target range of 0–2%.