Swiss central bank keeps zero-rate as tariffs take their toll

Switzerland's central bank kept its policy rate at zero percent on Thursday, warning that massive US tariffs are weighing on the country's export-dependent economy.

The Swiss National Bank (SNB) maintained its economic growth forecast at between one and 1.5 percent for this year, but revised it to "just under" one percent for 2026 due to the tariffs and uncertainty.

Speaking to reporters after the announcement, central bank chief Martin Schlegel warned that the "the US tariffs present a major challenge for affected companies and are likely to dampen economic activity".

Exports and investment were expected to be impacted, with companies in the machinery and watchmaking industries particularly affected, the SNB said in a statement.

US President Donald Trump shocked Switzerland last month