- Decision
- Maintain
- Rate change
- 0 bps
- snb policy rate
- 0%
The Swiss National Bank (SNB) held the SNB policy rate at 0% in its September assessment, saying higher energy prices had lifted inflation but medium-term inflationary pressure had increased only slightly, while current policy remained appropriate to preserve price stability and support economic activity. The rate has been held at 0% since September 2025. Sight deposits up to a threshold will earn the policy rate, with the 25-basis-point discount above that threshold unchanged. Inflation reached 0.8% in August, and the conditional forecast remains within the range of price stability throughout the horizon, with inflation expected to rise somewhat in the fourth quarter before easing during 2027 as elevated energy inflation wanes. Second-quarter GDP growth was exceptionally strong but flattered by chemicals and pharmaceuticals, while unemployment rose somewhat; the SNB projects growth of 1.5% to 2% in 2026 and around 1.5% in 2027. Recent Swiss franc depreciation is supporting activity but contributed to a slightly higher medium-term inflation forecast. Globally, growth exceeded expectations in the second quarter, while higher energy prices kept inflation elevated and uncertainty remained high because of the Middle East and trade policy. The SNB remains willing to act in the foreign exchange market as necessary to ensure appropriate monetary conditions.
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.