The Swiss Nationwide Financial institution ended its streak of 5 consecutive will increase, protecting rates of interest unchanged at its quarterly financial coverage assembly on Thursday.

The financial institution, which started lifting charges out of unfavourable territory in June 2022, held its principal coverage charge regular at 1.75%.

“The numerous tightening of financial coverage over current quarters is countering remaining inflationary stress,” the SNB stated in an announcement.

“From in the present day’s perspective, it can’t be dominated out {that a} additional tightening of financial coverage might turn into obligatory to make sure worth stability over the medium time period.”

Inflation in Switzerland got here in at an annual 1.6% in August, comfortably under the central financial institution’s 2% goal, and sits considerably decrease than that of the nation’s friends — headline inflation throughout the euro zone ran at 5.3% final month.

The Swiss franc has additionally been one of the best performing G10 foreign money this 12 months, whereas the Swiss financial system stagnated within the second quarter, signaling that this might be the final hike from the SNB this cycle.

At its earlier assembly in June, the central financial institution opted for a 25 foundation level improve, after increments of as a lot as 75 foundation factors beforehand.

The SNB famous that the expansion outlook for the worldwide financial system within the coming quarters “stays subdued,” though inflation is “prone to stay elevated worldwide in the intervening time.”

“Over the medium time period, nevertheless, it ought to return to extra average ranges, not least as a result of extra restrictive financial coverage,” the central financial institution stated.