- Decision
- Maintain
- Rate change
- 25 bps
- snb policy rate
- 0%
The Swiss National Bank (SNB) left its policy rate at 0 per cent at its 25 September 2025 monetary policy assessment, judging that broadly unchanged inflationary pressure and a weaker domestic outlook warrant continued accommodation to secure price stability and support activity. The hold follows two 25 bp cuts in March and June that lowered the rate by a cumulative 50 bp to its current level. Banks’ sight deposits will keep earning the policy rate up to a set threshold, with a 0.25 pp discount on balances above it, and the SNB reaffirmed its readiness to intervene in the foreign-exchange market. Headline inflation ticked up to 0.2 per cent y/y in August from –0.1 per cent in May, but the conditional forecast—based on a constant 0 per cent rate—remains within the price-stability range, averaging 0.2 per cent in 2025 and rising only to 0.7 per cent by 2027. After GDP growth slowed to 0.5 per cent in Q2, the central bank still projects overall expansion of 1–1.5 per cent this year and just under 1 per cent in 2026 amid rising unemployment and the drag from higher US tariffs on key export sectors. Global growth moderated in the first half of 2025 as trade tensions mounted, with the SNB expecting subdued international activity, elevated US inflation and near-target euro-area inflation, while warning that further trade barriers or, conversely, stronger resilience remain plausible. The Governing Board will keep monitoring developments and stands ready to adjust policy if needed.
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.