The Swiss National Bank (SNB), as widely expected, announced to keep the policy rate unchanged at 0% at the conclusion of the second quarter meeting this Thursday.

In the accompanying policy statement, the SNB revised its inflation forecast to 0.6% for 2027 and to 0.7% for 2028, up from 0.5% and 0.6%, respectively. The central bank sees 2026 GDP growth at around 1%, the same as forecasted previously.

Meanwhile, the SNB reiterated that it will continue to monitor the situation and adjust its monetary policy, if necessary, in order to ensure price stability. In its baseline scenario, the central bank anticipates that inflation worldwide will remain elevated over the coming quarters due to higher raw material prices and that global economic growth is likely to be more moderate in the short term than in the previous quarters.

The Swiss Franc (CHF) edges lower following the decision, lifting the USD/CHF pair back above the 0.8000 psychological mark. However, a broadly weaker US Dollar (USD) keeps the currency pair below its highest level since early April, touched on Wednesday.

The market focus now shifts to the post-meeting press conference, where comments from SNB Chairman Martin Schlegel and Governing Board Members might provide a fresh impetus to the CHF.