Swiss Market Ends Weak For 3rd Straight Day; SNB Leaves Rates Unchanged

(RTTNews) - The Switzerland market ended notably lower for a third straight session, as stocks reeled under selling pressure right through the day's trading session Thursday. Investors digested the Swiss central bank's decision to leave its policy rate unchanged.

The benchmark SMI ended down by 103.03 points or 0.86% at 11,875.80, the session's low.

Sonova ended more than 4% down. Amrize and Galderma Group closed lower by 3.54% and 3.36%, respectively.

UBS Group, Straumann Holding, Kuehne + Nagel, Swatch Group and VAT Group lost 2 to 2.6%.

Roche Holding, Partners Group, Holcim, Sandoz Group, Alcon, Julius Baer, Givaudan, Lindt & Spruengli and Lonza Group also ended notably lower.

Swiss Re climbed by about 1.3%. Swisscom advanced nearly 1%, and Novartis closed marginally up.

The Swiss National Bank today left its policy rate unchanged after easing for six straight meetings as higher US trade tariffs dampened the economic outlook amid weak inflation.

The SNB retained its policy rate unchanged at zero percent, as widely expected.

The central bank had reduced the key rate by 175 basis points since March 2024. The bank exited its negative rate in 2022 after holding it for over seven years.

The bank observed that the economic outlook for Switzerland deteriorated due to significantly higher US tariffs. The bank continues to expect GDP growth of 1% to 1.5% for 2025. Due to tariffs and the high level of uncertainty, the SNB expects growth of just under 1% for 2026.

Although inflation rose slightly since the last meeting, the bank retained its inflation outlook. Inflation is projected at 0.2% this year, 0.5% in 2026 and 0.7% in 2027.