Swiss National Bank Leaves Key Rate at 0%

The Swiss National Bank kept its policy rate at 0% in its September 2026 meeting, in line with market expectations, keeping borrowing costs at zero since mid-2025. Policymakers stated that the current stance remains appropriate to maintain price stability and support economic development. Inflation has risen further since June, with the rate rising to 0.8% in August from 0.6% in May, driven mainly by higher energy prices. The SNB expects inflation to rise further in the fourth quarter before easing through 2027. The bank also forecasts average inflation of 0.7% in 2026 and 0.8% in both 2027 and 2028. Meanwhile, policymakers expect Swiss GDP growth of 1.5%-2% in 2026 and around 1.5% in 2027, while highlighting high uncertainty from Middle East tensions, global growth, trade policy and exchange rates. The SNB also said it remains willing to intervene in foreign exchange markets as necessary.

The Swiss National Bank kept its policy rate at 0% in its June 2026 meeting, as expected, stating the current stance supports price stability and economic growth. Policymakers noted that medium-term inflation pressures remain largely unchanged, despite recent price increases driven by higher energy costs. The SNB forecasts inflation to rise slightly in the near term before easing in early 2027, with annual averages of 0.6% for 2026 and 2027, and 0.7% for 2028. Growth is projected at 1% for 2026 and 1.5% for 2027. The bank highlighted global economic risks, particularly Middle East tensions, potentially strengthening the Swiss franc, and uncertain US trade policy. The SNB also signaled a greater readiness to intervene in foreign exchange markets if needed.

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.