• Prior 0.50%
• Prepared to intervene in FX market as necessary
• SNB is ensuring that monetary conditions remain
  appropriate, given the low inflationary pressure and the heightened downside risks to
  inflation
• Will continue to monitor the situation closely and adjust its monetary
  policy if necessary
• Inflation has developed in line with expectations
• Anticipates that growth in the global economy will remain
  moderate over the coming quarters
• Underlying inflationary pressure should continue to ease
  gradually over the next quarters
• The situation
  could change rapidly and markedly, particularly from a trade and geopolitical perspective
• 2025 GDP seen at around 1.0% to 1.5% (unchanged)
• 2026 GDP seen at around 1.5%
• 2025 CPI seen at 0.4% (previously 1.1%)
• 2026 CPI seen at 0.8% (previously 0.3%)
• 2027 CPI seen at 0.8% (previously 0.8%)
• Full statement

There’s no outright signal that they are moving to the sidelines but there’s a lot of emphasis on heightened uncertainty, particularly from overseas developments. That said, they still are of the view that inflation pressures will be kept at bay through the year. With the key policy rate now at 0.25%, I don’t think they would want to push the ZIRP or NIRP agenda too quickly. Gotta save up some ammunition after all.

The franc is slightly lower with USD/CHF now up 0.3% to 0.8800 and EUR/CHF paring losses to flat at 0.9568 currently. That as traders had only priced in ~68% odds of a rate cut coming into the decision.