19.03.202609:31:39UTC+00Swiss Franc Holds Firm

The Swiss franc hovered around 0.79 per USD, close to its strongest level since 2011, bolstered by safe-haven demand amid ongoing geopolitical tensions and a steady monetary policy stance. The Swiss National Bank kept its benchmark interest rate at 0% for a third consecutive meeting, as widely expected, and reiterated its willingness to intervene in the foreign exchange market to curb excessive currency appreciation and safeguard price stability.

Annual inflation remained at 0.1% in February for the third straight month, sitting at the lower bound of the SNB’s 0%–2% target range but still in line with its projections. The central bank expects the recent rise in energy prices to push inflation higher in the coming quarters, forecasting an average rate of 0.5% in 2026 and 2027, and 0.6% in 2028.

Following a mild recovery in the fourth quarter, the economy is projected to expand by around 1% in 2026. However, the SNB emphasized that the outlook has become considerably more uncertain.