- Decision
- Lower
- Rate change
- 25 bps
- snb policy rate
- 0%
The Swiss National Bank (SNB) cut the SNB policy rate by 25 bp to 0.00%, effective 20 June 2025, to counter diminished inflationary pressure and safeguard medium-term price stability. The move follows a 25 bp reduction in March that had brought the rate to 0.25%. Sight deposits will keep earning the policy rate up to individual thresholds, while balances above those thresholds will remain discounted by 25 bp, and the SNB reaffirmed its willingness to intervene in the foreign-exchange market if needed. Headline inflation fell to –0.1% y/y in May from 0.3% in February, and the conditional forecast (based on a 0% policy rate) sees average inflation at 0.2% in 2025, 0.5% in 2026 and 0.7% in 2027, all within the stability range. GDP was boosted in Q1 2025 by front-loaded US exports, but growth is projected to moderate, leaving full-year 2025–26 output gains at 1–1.5% and unemployment edging higher. Externally, the SNB expects global growth to weaken amid rising trade tensions and high uncertainty over further trade barriers or potential fiscal support. It will monitor conditions closely and stands ready to adjust policy again if required.
Rate evolution
Over the period, the Swiss National Bank eased the SNB policy rate by 25 basis points to 0% in June 2025 and then held it there through September 2026. The cut responded to weaker inflationary pressure, with inflation turning slightly negative and the near-term forecast lowered, while subsequent decisions judged medium-term inflation pressure broadly unchanged and monetary policy as consistent with price stability.
As the hold phase unfolded, the Swiss National Bank linked a weaker Swiss outlook and rising unemployment mainly to external forces, first citing trade tensions and higher US tariffs, then noting in December that global activity had been more resilient, lower US tariffs had slightly improved the outlook and uncertainty had eased somewhat. In March 2026, it kept the rate at 0% and increased its readiness to intervene in foreign exchange markets as the Middle East conflict lifted energy prices and strengthened the CHF, arguing that short-term inflation would rise but medium-term inflation remained within the price stability range, near-term growth could stay subdued, and policy would be adjusted if necessary. On 18 June 2026, the Swiss National Bank again left the SNB policy rate at 0% and maintained its increased willingness to intervene to counter a rapid and excessive appreciation of the CHF, while noting inflation had risen from 0.1% in February to 0.6% in May mainly because of higher oil product prices, that the shorter-term forecast was slightly higher due to raw material prices and higher inflation abroad, and that medium-term inflationary pressure was virtually unchanged as more moderate global economic growth was still likely to dampen Swiss activity in the coming quarters. On 24 September 2026, it again held the SNB policy rate at 0% and said it was willing to be active in the foreign exchange market as necessary, as inflation rose to 0.8% in August mainly on higher oil product prices, the shorter-term forecast increased due to higher-than-expected oil product prices and the medium-term forecast rose slightly partly because of the weaker CHF, although medium-term inflationary pressure increased only slightly and policy remained appropriate to keep inflation within the range consistent with price stability and support economic development.