The Swiss National Bank holds interest rates at zero for the second time

The Swiss National Bank (SNB) held its key interest rate at zero, the lowest among major central banks, for the second consecutive time, despite a contracting economy and persistently low inflation.

Thursday's monetary policy decision was widely expected by markets. It comes amid a slowdown in the Swiss economy, which shrank by 0.5% in the third quarter, and after inflation fell in November to the lower end of the SNB's target range of 0% to 2%.

In its statement, the central bank noted that "inflation in recent months has been slightly lower than expected. However, medium-term inflationary pressures remain roughly stable compared to the last monetary policy assessment."

This meeting was the SNB's first since reaching an agreement with Washington last November to reduce additional tariffs on Swiss goods to 15% from the previous rate of 39%.