News

SNB Leaves Policy Rate Unchanged at 0%
The Swiss National Bank kept its policy rate unchanged at 0% in March 2026, maintaining remuneration on sight deposits up to a set threshold, with a 0.25 percentage point discount applied above it. Amid the Middle East conflict, the SNB signaled a greater willingness to intervene in currency markets to prevent excessive Swiss franc appreciation and protect price stability. Inflation has edged up slightly, reaching 0.1% in February, with higher energy prices expected to push it further in the near term, though medium term pressures remain stable. The SNB forecasts average inflation at 0.5% in 2026 and 2027, and 0.6% in 2028. While global growth was solid late last year, rising energy costs and geopolitical tensions are increasing uncertainty and may slow activity. Switzerland’s economy showed modest growth, with GDP rebounding in the fourth quarter, and is expected to expand around 1% in 2026, though risks remain tied to global conditions.
Published on 2026-03-19

SNB leaves Policy Rate Unchanged at 0%
The Swiss National Bank kept its policy rate unchanged at 0% in March 2026, maintaining remuneration on sight deposits up to a set threshold, with a 0.25 percentage point discount applied above it. Amid the Middle East conflict, the SNB signaled a greater willingness to intervene in currency markets to prevent excessive Swiss franc appreciation and protect price stability. Inflation has edged up slightly, reaching 0.1% in February, with higher energy prices expected to push it further in the near term, though medium term pressures remain stable. The SNB forecasts average inflation at 0.5% in 2026 and 2027, and 0.6% in 2028. While global growth was solid late last year, rising energy costs and geopolitical tensions are increasing uncertainty and may slow activity. Switzerland’s economy showed modest growth, with GDP rebounding in the fourth quarter, and is expected to expand around 1% in 2026, though risks remain tied to global conditions.
Published on 2026-03-19

SNB Holds Policy Rate at 0%
The Swiss National Bank kept its policy rate at 0% during its final meeting of the year, retaining the 0.25 percentage point penalty on sight deposits above the set limit, and said it remains ready to intervene in foreign exchange markets if needed. Inflation remained muted, falling to 0.0% in November from 0.2% in August, driven by lower costs for hotels, rents, and clothing. The SNB projects inflation at 0.2% in 2025, 0.3% in 2026, and 0.6% in 2027, assuming the policy rate remains unchanged. Global growth exceeded expectations in Q3 2024 despite trade tensions, though risks from US tariffs and uncertain trade policies persist. Swiss GDP contracted in Q3, largely due to a pullback in pharmaceuticals after frontloaded US exports, while other manufacturing and services recorded modest gains. The SNB expects GDP growth of just under 1.5% in 2025, slowing to around 1% in 2026, with unemployment likely to rise modestly amid subdued economic activity.
Published on 2025-12-11

SNB Holds Policy Rate at 0%
The Swiss National Bank left its policy rate at 0% in its final meeting of the year and maintained the 0.25-percentage-point charge on sight deposits above the set threshold. It also reaffirmed its readiness to intervene in the foreign exchange market if needed. Inflation remained subdued, slipping to 0.0% in November from 0.2% in August due to lower prices for hotels, rents, and clothing. Assuming no change in the policy rate, the SNB expects inflation at 0.2% in 2025, 0.3% in 2026, and 0.6% in 2027. Meanwhile, Swiss GDP contracted in Q3, mainly reflecting a correction in pharmaceuticals after front-loaded exports to the US, while other industries and services posted slight gains. The SNB now sees GDP growth near 1.5% in 2025, slightly above its earlier range of 1% to 1.5%, and around 1% in 2026, compared with its previous projection of just under 1%. It also expects a modest increase in unemployment as overall economic momentum remains muted.
Published on 2025-12-11

SNB Leaves Policy Rate Unchanged at 0%
The Swiss National Bank left its policy rate unchanged at 0%, maintaining the 0.25 percentage point discount on sight deposits above the set threshold, and reaffirmed its readiness to intervene in foreign exchange markets if needed. Inflationary pressure remains subdued, with inflation edging up to 0.2% in August from -0.1% in May, driven mainly by tourism and imported goods. The SNB projects inflation at 0.2% in 2025, 0.5% in 2026, and 0.7% in 2027, assuming the policy rate stays at 0%. Global growth slowed in early 2025, weighed down by US tariffs and uncertainty, with the SNB expecting subdued expansion ahead. In Switzerland, GDP growth softened to 0.5% in Q2 after a strong Q1 boosted by pharmaceutical exports. Higher US tariffs are set to dampen exports and investment, particularly in machinery and watchmaking, while services remain resilient. The SNB forecasts 1–1.5% GDP growth in 2025, slowing to just under 1% in 2026, with unemployment expected to rise further.
Published on 2025-09-25

SNB Lowers Interest Rate to Zero
The Swiss National Bank (SNB) cut its policy rate by 25 basis points to 0% in June 2025, as expected, setting borrowing costs at zero for the first time since negative rates in late 2022. The move came amid easing inflationary pressures and a weakening global economic outlook. Consumer prices in Switzerland fell 0.1% in May, mainly due to lower prices in tourism and oil products. The SNB now projects average inflation at 0.2% for 2025, 0.5% for 2026, and 0.7% for 2027, assuming the policy rate remains unchanged throughout the forecast period. Swiss GDP posted strong growth in Q1 2025, partly boosted by early exports to the US ahead of new tariffs, though underlying momentum was more modest. Growth is expected to slow in the coming quarters, with GDP expansion forecast at 1% to 1.5% for both 2025 and 2026. Meanwhile, the global outlook has worsened due to rising trade tensions between major economies, adding further uncertainty to Switzerland’s trade prospects.
Published on 2025-06-19

SNB Lowers Interest Rate to 0%
The Swiss National Bank (SNB) cut its policy rate by 25 bps to 0% in June 2025, as expected, setting borrowing costs at zero for the first time since negative rates in late 2022. The move came amid easing inflationary pressures and a weakening global economic outlook. Consumer prices in Switzerland fell by 0.1% in May, marking the first decline in four years, mainly driven by lower prices in tourism and oil products. The SNB now projects average inflation at 0.2% for 2025, 0.5% for 2026, and 0.7% for 2027. Swiss GDP also posted strong growth in the first quarter of 2025, partly supported by early exports to the US ahead of new tariffs, although underlying momentum was more modest. Growth is expected to slow in the coming quarters, with GDP expansion forecast at 1% to 1.5% for both 2025 and 2026. Meanwhile, the global outlook has deteriorated due to rising trade tensions, adding further uncertainty to Switzerland’s trade prospects.
Published on 2025-06-19

SNB Lowers Interest Rate to Zero
The Swiss National Bank (SNB) cut its policy rate by 25 bps to 0% in June 2025, as expected, setting borrowing costs at zero for the first time since negative rates in late 2022. The move came amid easing inflationary pressures and a weakening global economic outlook. Consumer prices in Switzerland fell by 0.1% in May, marking the first decline in four years, mainly driven by lower prices in tourism and oil products. The SNB now projects average inflation at 0.2% for 2025, 0.5% for 2026, and 0.7% for 2027. Swiss GDP also posted strong growth in the first quarter of 2025, partly supported by early exports to the US ahead of new tariffs, although underlying momentum was more modest. Growth is expected to slow in the coming quarters, with GDP expansion forecast at 1% to 1.5% for both 2025 and 2026. Meanwhile, the global outlook has deteriorated due to rising trade tensions, adding further uncertainty to Switzerland’s trade prospects.
Published on 2025-06-19

SNB Lowers Interest Rate as Expected
The Swiss National Bank (SNB) cut its policy rate by 25 basis points to 0.25% in March 2025, the lowest since September 2022, as expected amid low inflation and economic uncertainty. It marks the central bank’s fifth cut in the current cycle. Inflation has declined from 0.7% in November to 0.3% in February, mainly due to lower electricity prices, though domestic services continue to drive price growth. The SNB’s inflation forecast remains stable, projecting 0.4% for 2025 and 0.8% for both 2026 and 2027, assuming the rate stays at 0.25%. Switzerland’s economy grew steadily in late 2024, supported by services and parts of manufacturing, though unemployment edged higher. The SNB expects GDP growth of 1% to 1.5% in 2025, driven by higher real wages and easier monetary policy, though weak global demand could weigh on trade. Growth is forecast at 1.5% for 2026, but uncertainties remain, with geopolitical and trade risks posing potential threats.
Published on 2025-03-20

SNB Cuts Rate to 0.5%, More Than Expected
The Swiss National Bank (SNB) cut its key policy rate by 50bps to 0.5% in December 2024, exceeding market expectations for a smaller 25bps cut. This marks the fourth straight rate reduction and the steepest since January 2015, bringing borrowing costs to their lowest since November 2022. The decision comes as inflation eases, dropping from 1.1% in August to 0.7% in November, driven by lower costs in domestic services, oil, and food. Inflation is forecast to average 1.1% in 2024, 0.3% in 2025, and 0.8% in 2026, staying within the SNB's target range. Swiss GDP is expected to grow around 1% this year, with slight improvement to 1–1.5% in 2025, supported by recent rate cuts. However, rising unemployment, slower production, and global uncertainties—like geopolitical tensions and unclear policy directions abroad—pose risks to the economic outlook.
Published on 2024-12-12

SNB Lowers Interest Rate for 3rd Time
The Swiss National Bank cut its key policy rate by 25 bps to 1% in September 2024, a third consecutive reduction and pushing borrowing costs to the lowest since early 2023, in line with market expectations. Policymakers added they remain willing to be active in the foreign exchange market as necessary and further interest rate cuts may become necessary in the coming quarters to ensure price stability over the medium term. The central bank noted that inflationary pressure in Switzerland has again decreased significantly compared to the previous quarter. Among other things, this decrease reflects the appreciation of the Swiss franc over the last three months. Inflation in Switzerland eased to 1.1% in August. The central bank revised its inflation forecasts lower for 2024 (1.2% vs 1.3%), 2025 (0.6% vs 1.1%) and 2026 (0.7% vs 1%). Forecasts for GDP growth however, were maintained at around 1% in 2024 and 1.5% in 2025.
Published on 2024-09-26

SNB Cuts Rate by 25bps
The Swiss National Bank reduced its key policy rate by 25 bps to 1.25% in June 2024, following a similar move in the previous meeting, in line with market expectations due to a decrease in underlying inflationary pressure and the strength of the Swiss franc. This adjustment aims to maintain appropriate monetary conditions, with inflation currently driven mainly by higher prices for domestic services. The SNB’s new conditional inflation forecast is similar to March's, average annual inflation of 1.3% in 2024, 1.1% in 2025, and 1.0% in 2026, assuming the policy rate remains at 1.25%. The SNB expects moderate GDP growth of around 1% in 2024 and 1.5% in 2025, with a slight rise in unemployment and normal utilization of production capacity. Prior to the decision, the franc traded close to 3-month highs against the dollar and 4-month highs against the euro, as political turmoil in France and the rise of far-right parties in European Parliament elections prompted a flight to safety.
Published on 2024-06-20

SNB Unexpectedly Cuts Policy Rate
The Swiss National Bank reduced its key policy rate by 25 bps to 1.5% in March 2024, marking the first cut in nine years, a surprise move that made it the first major central bank to ease monetary policy. The cut comes after Swiss inflation fell to 1.2% in February, the ninth consecutive month that prices have been moving within the SNB's 0-2% target range, indicative of price stability. The central bank said it was taking into account the reduced inflationary pressure as well as the appreciation of the Swiss franc in real terms over the past year. Policymakers anticipate inflation to remain within the range of price stability over the next few years, and will closely monitor it to ensure it stays within this range. The SNB forecasts average annual inflation at 1.4% for 2024, 1.2% for 2025 and 1.1% for 2026. Meanwhile, economic growth is likely to remain modest in the coming quarters, with growth rate seen around 1% this year.
Published on 2024-03-21

Switzerland Leaves Rates Steady as Expected
The Swiss National Bank kept its key policy rate unchanged at 1.75% for a second consecutive meeting in December 2023, in line with forecasts, saying inflationary pressure has decreased slightly. However, policymakers noted that uncertainty remains high and will continue to monitor the development of inflation closely, and will adjust its monetary policy if necessary to ensure inflation remains within the range consistent with price stability over the medium term. Inflation in Switzerland slowed to 1.4% in November, the lowest rate since October 2021, but it is likely to increase again somewhat in the coming months due to higher electricity prices and rents, as well as the rise in VAT. The central bank sees average annual inflation at 2.1% for 2023, 1.9% for 2024 and 1.6% for 2025. Meanwhile, economic growth is likely to be weak in the coming quarters, with the 2023 growth rate seen around 1% while for 2024, the central bank expects it between 0.5% and 1%.
Published on 2023-12-14

Switzerland Unexpectedly Halts Rate Hikes
The Swiss National Bank unexpectedly kept its benchmark policy rate steady at 1.75% in its September 2023 meeting, saying the significant tightening of monetary policy over recent quarters is countering remaining inflationary pressure. It marks a pause in the rate-hike campaign that started in June last year, compared to market forecasts of a 25bps increase. However, policymakers added that it cannot be ruled out that a further tightening of monetary policy may become necessary to ensure price stability over the medium term and will monitor the development of inflation closely in the coming months. Meanwhile, inflation forecasts were kept at 2.2% for both 2023 and 2024 and the GDP growth for the Swiss economy is seen at around 1% this year, little changed from the previous forecast. The annual inflation rate in Switzerland was unchanged at 1.6% in August, remaining at its lowest since January 2022 and the economy stalled in Q2.
Published on 2023-09-21

SNB Hikes Key Rate for 5th Straight Time
The Swiss National Bank raised its policy interest rate by 0.25 percentage points to 1.75 percent during its June meeting and signaled the possibility of further rate hikes in the future to ensure price stability over the medium term. This latest adjustment marks the fifth consecutive rate increase since the beginning of the SNB's tightening cycle last year, bringing borrowing costs to their highest level since April 2002. Although the SNB has revised its 2023 inflation forecast downward, it has raised the projection for 2024 due to ongoing second-round effects, elevated electricity prices, increased rents, and persistent inflationary pressures from international sources. According to the new forecast, average annual inflation is expected to be 2.2 percent for both 2023 and 2024, with a slight decrease to 2.1 percent for 2025. Furthermore, the SNB expressed expectations of modest growth for the remainder of the year following a strong first quarter.
Published on 2023-06-22

SNB Rises Interest Rate by 50bps
The Swiss National Bank raised its policy rate by 50 bps to 1.5% in its March meeting, following a similar move in December and bringing borrowing costs the highest since November 2008. The central bank also said that additional hikes in the policy rate could not be ruled out to ensure price stability over the medium term. To provide appropriate monetary conditions, the SNB remains willing to be active in the foreign exchange market as necessary. The central bank now sees average annual inflation at 2.6% for 2023 (compared to previous projections of 2.4%), and 2.0% for 2024 (from 1.8).
Published on 2023-03-23

SNB Hikes Rate by 50bps
The Swiss National Bank raised its policy rate by 50 bps to 1% in its December, following a 75 bps rate hike in September and bringing borrowing costs the highest since 2008 and said that additional rises in the SNB policy rate might be necessary to ensure price stability over the medium term. To provide appropriate monetary conditions, the SNB is also willing to be active in the foreign exchange market as necessary. The central bank now sees average annual inflation at 2.9% for 2022 (compared to previous projections of 3.0%), 2.4% for 2023 (the same as in September) and 1.8% for 2024 (from 1.7%).
Published on 2022-12-15

Swiss National Bank Hikes Rate to 0.5%
The Swiss National Bank raised its policy rate by 75bps to 0.5% in its September meeting, lifting borrowing costs to positive territory for the first time since 2011 and signaling that the interest rate will likely continue to increase in the coming meetings. It was the second rate hike since 2007 after the central bank kept its policy rate at record lows of -0.75% since 2015. The decision was aimed to counter higher price growth, after surging prices for energy and food lifted headline inflation to a 29-year high of 3.5%. The SNB also emphasized it is willing to intervene on the foreign exchange market if needed. In the meantime, the central bank revised inflation forecasts upwards to 3.4% by the end of the year (compared to previous projections of 3%) and 1.7% at the end of 2023 (from 1.4%). The SNB also lowered growth forecasts to 2% this year from previous expectations of 2.5%, as energy prices pressure manufacturing.
Published on 2022-09-22

SNB Unexpectedly Hikes Rate by 50bps
The Swiss National Bank hiked its policy rate by 50bps to -0.25% in its June 2022 meeting, surprising markets that expected the interest rate to be held constant, and did not rule out further rate increases in coming meetings. It was the first rate hike since 2007 after the central bank kept its policy rate at record lows of -0.75% since 2015. The decision was made aimed to counter increased inflationary pressure and prevent price growth from spreading more broadly to goods and services, after surging prices for energy and food lifted headline inflation to 14-year highs of 2.9%. The SNB also emphasized it is willing to intervene on the foreign exchange market if needed. The bank revised year-end inflation forecasts to 2.8% for this year, compared to previous projections of 2.1%, despite the rate change. Also, the SNB held growth forecasts to 2.5% this year, expecting output to remain favorable and unemployment to stay low, should energy supply in Europe not be adversely affected.
Published on 2022-06-16