- Decision
- Maintain
- Rate change
- 0 bps
- snb policy rate
- 0%
The Swiss National Bank (SNB) left the SNB policy rate at 0 percent at its 19 March 2026 assessment, citing higher near-term inflation from rising energy prices linked to the Middle East conflict but little change in medium-term pressures and an outlook that keeps inflation within its price-stability range. After cutting the rate by 25 bp to 0 percent in June 2025, the central bank has maintained this level. Sight deposits continue to earn the policy rate up to a set threshold, with a 0.25 percentage-point discount applied above it, and the SNB signalled an increased readiness to intervene in the foreign-exchange market to resist rapid Swiss-franc appreciation. Consumer price inflation edged up to 0.1 percent in February from 0.0 percent in November; the conditional forecast now sees average inflation at 0.5 percent in 2026, 0.5 percent in 2027 and 0.6 percent in 2028. Swiss GDP returned to growth in the fourth quarter after a prior contraction, yet the central bank expects subdued momentum with full-year expansion of about 1 percent in 2026 and 1.5 percent in 2027, while unemployment was unchanged in February. Externally, the bank highlighted heightened uncertainty and the risk of stronger energy-price shocks, supply-chain disruptions and trade tensions stemming from the Middle East conflict, which could lift global inflation and dampen activity. The SNB reiterated that it will monitor developments closely and stands ready to adjust policy as needed to safeguard medium-term 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.