The Swiss National Bank (SNB) maintained its policy rate at 0% on September 24, 2026, while emphasizing that monetary conditions remain appropriate to support price stability and economic growth amid rising inflation and heightened global uncertainty.
Banks continue to earn the SNB’s policy rate on sight deposits up to a specified threshold, with any deposits above that threshold discounted by 0.25 percentage points. The SNB also retains its readiness to intervene in the foreign exchange market as needed to maintain appropriate monetary conditions.
Inflation has risen since June, driven primarily by higher energy prices, particularly oil products, which contributed to a goods inflation increase in August—its first positive reading since May 2024. The year-on-year inflation rate climbed from 0.6% in May to 0.8% in August. The SNB’s conditional inflation forecast projects further increases in the fourth quarter of 2026 before a gradual decline through 2027, largely due to expected easing in energy price pressures. Over the medium term, the forecast remains within the SNB’s price-stability target range, with average annual inflation projected at 0.7% for 2026, 0.8% for 2027, and 0.8% for 2028, assuming the policy rate stays at 0%.
Global economic growth has outpaced expectations in the second quarter, though inflation remains elevated in many economies, partly due to sustained energy price pressures. Key central banks, including those in the euro area and the United States, have raised interest rates. The SNB anticipates moderate global growth in the coming quarters, with inflation persisting at elevated levels.
Switzerland’s GDP growth was exceptionally strong in the second quarter, partly reflecting robust performance in the chemicals and pharmaceuticals sectors. However, underlying growth momentum remained solid and broad-based, though manufacturing capacity utilization remained below average. Unemployment rose slightly through early summer. The SNB expects Swiss GDP growth of 1.5% to 2% in 2026, with growth moderating to around 1.5% in 2027, supported by external growth stimuli, monetary policy, and a depreciated Swiss franc.
The primary risks to Switzerland’s economic outlook stem from global developments, including potential deterioration in the Middle East, which could further spike energy prices and dampen economic activity. Trade policy uncertainties and exchange rate movements also remain sources of concern. The SNB’s baseline scenario remains subject to high uncertainty, with energy price volatility and geopolitical tensions as key variables.
The decision aligns with the SNB’s commitment to maintaining monetary conditions that support price stability while fostering economic development.
