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.
2026-09-24Swiss National Bank
Swiss National Bank Holds Policy Rate at 0%
The Swiss National Bank held its policy rate at 0%, judging current settings appropriate as medium-term inflationary pressure increased only slightly, and reiterated its willingness to intervene in foreign exchange markets if needed. Inflation reached 0.8% in August, while the SNB projects GDP growth of 1.5% to 2% in 2026 and around 1.5% in 2027.