- Decision
- Maintain
- Rate change
- 0 bps
- snb policy rate
- 0%
The Swiss National Bank (SNB) kept the SNB policy rate at 0 percent, judging that slightly lower-than-expected recent inflation alongside virtually unchanged medium-term pressures allows current settings to continue anchoring price stability while supporting activity. The decision follows two 25 bp cuts in March and June that reduced the rate to its present level. Banks’ sight deposits remain remunerated at the policy rate up to a set threshold, with a 0.25 percentage-point discount applied above it, and the central bank reiterated its readiness to intervene in the foreign-exchange market if needed. Consumer price inflation eased to 0.0 percent in November from 0.2 percent in August, and the conditional forecast—built on a constant 0 percent policy rate—shows average inflation of 0.2 percent in 2025, 0.3 percent in 2026 and 0.6 percent in 2027, all within the price-stability range; GDP, after contracting in Q3 on a pharmaceuticals pullback, is projected to grow just under 1.5 percent in 2025 and around 1 percent in 2026 while unemployment edges higher. The SNB noted stronger-than-expected global growth in Q3 but expects only moderate expansion ahead, with elevated US inflation, euro-area price gains near target and trade tensions, notably US tariffs, still posing significant risks. It pledged to monitor developments closely and adjust policy as needed to safeguard price stability.
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.