Swiss National Bank holds rates steady after September review

The Swiss National Bank (SNB) maintained its benchmark interest rate at 1.25% following its monetary policy assessment on September 25, 2025. The decision aligns with expectations as inflation in Switzerland has remained within the central bank’s target range of 0% to 2%.

In a statement accompanying the announcement, the SNB noted that the Swiss economy has continued to grow at a moderate pace, supported by steady domestic demand and a resilient labor market. The central bank also highlighted that the inflation outlook remains stable, with no immediate pressure for further policy adjustments.

The SNB’s decision follows a series of rate hikes in prior quarters aimed at addressing inflationary pressures. However, recent data suggests that inflationary risks have subsided, reducing the urgency for additional tightening. The central bank reiterated its commitment to monitoring economic and financial developments closely, emphasizing its readiness to act if conditions warrant.

The Swiss franc, which often reacts to SNB policy signals, traded relatively stable following the announcement. Analysts suggest the decision reflects confidence in Switzerland’s ability to manage inflation without further rate increases in the near term.