Morgan Stanley Sees Chinese Auto Market Recovery Gaining Momentum in Late Summer 
BOJ Raises Interest Rates to 31-Year High, Signals Strong Focus on Inflation Risks 
RBA Expected to Hold Interest Rates at 4.35% as Markets Watch AUD/USD and ASX 200 
Goldman Sachs Sees Fed Holding Interest Rates Steady Until 2027 
ECB Set to Raise Interest Rates as Energy Shock Fuels Eurozone Inflation Concerns 
Central Banks Eye Gold, Reduce Dollar Exposure as AI Adoption Accelerates: OMFIF Survey 
RBI Hits Pause as Geopolitical Storm Clouds Gather 
BOJ Signals More Rate Hikes as Inflation Risks Rise Amid Energy Price Pressures 
The government is ‘doubling down’ on its social media ban. But bigger penalties for platforms aren’t enough 
Policy Decision
At today's December 2025 monetary policy evaluation, the Swiss National Bank left its policy rate unchanged at 0%, therefore sustaining one of the most accommodative positions among top central banks. Sight deposits are compensated at 0% up to a certain threshold, with a small 25-basis-point discount applied to values above it. Once more stressing its willingness to intervene as needed in the foreign exchange market, the SNB indicated continued worry about possibly excessive Swiss franc appreciation.
Inflation is still practically non-existent.
Driven by lower hotel, rent, and clothing prices, Swiss inflation has dropped from 0.2% in August to exactly 0.0% in November. Assuming steady 0% rates, the SNB's new conditional inflation prediction projects average CPI at merely 0.2% in 2025, 0.3% in 2026, and 0.6% in 2027—all comfortably within but at the very lower end of the 0–2% price-stability range.
Outlook and Market Forecast
While preserving price stability and supporting economic activity, the Bank judges medium-term inflationary pressure to be mostly unchanged and believes the current ultra-easy policy to be suitable. Global risks have little eased but are still great. Markets and analysts nearly all anticipate the SNB to maintain 0% rates throughout 2026, with just a rather low likelihood priced in for a return to negative area.
