The National Bank of Switzerland (SNB) maintained the key interest rate on zero on Thursday, the lowest among the major central banks, warning that US President Donald Trump duties have tarnished the prospects for the Swiss economy by 2026.

SNB has kept its policy rate at 0%, as expected by markets and a Reuters poll, assisted by a slight rise in inflation in recent months. It was the first maintenance of seven SNB meetings after the launch of borrowing costs in March 2024.

SNB President Martin Schlegel has repeatedly stated that there are major obstacles to reintroduce a negative interest rate, a policy that has raised concerns to savings and pension funds when implemented from December 2014 to September 2022.

The announcement was SNB’s first monetary policy since Trump imposed a 39% duty on Swiss exports to the United States in August.

SNB said that companies in the fields of machinery and watchmaking are particularly influenced by tariffs, but that the impact on other sectors – especially on services – was limited.

“The economic prospects for Switzerland have worsened due to significant US duties. Duties are likely to adversely affect exports and investments in particular, “he said.

Due to duties and high levels of uncertainty, SNB is now expected to grow just below 1% for 2026. In this environment, unemployment is likely to continue to grow, he said.

The SNB decision comes a week after the US federal bank decision to reduce its fields to prevent the risk of rising unemployment and indicate that more reductions may follow.

Meanwhile, the European Central Bank has maintained the interest rate unchanged in September, interrupting the recent interest rate reductions, although debate on interest rate cuts are not over.

SNB’s decision to maintain interest rates unchanged did not surprise analysts, who also highlighted the Swiss Franco’s relative stability against the euro as a reason for maintaining interest rates at 0%.