- SNB keeps interest rate at 0%
- The SNB remains ready to intervene in the foreign exchange market if needed; no plans to reinstate a minimum exchange rate.
- Inflationary pressure is essentially unchanged compared to Q2; the conditional forecast remains within the 0–2% price stability range.
- US tariffs are the main downside risk, weighing on Swiss exports/investments — especially machinery and watchmaking.
- No forward guidance; decisions are made quarterly. The threshold for negative rates is high, but rates could go below zero if medium-term inflation were to leave the target band.
The Swiss National Bank left its policy rate unchanged at 0%, marking a pause after a series of cuts since March 2024. Sight deposits will continue to be remunerated at 0% up to set thresholds, with amounts above that subject to a 0.25 percentage point discount. Policymakers emphasized readiness to act in FX markets if needed but ruled out a return to a minimum exchange rate, noting today’s context differs from 2011.
On prices, the SNB assessed that inflationary pressures are broadly unchanged from the previous quarter. Headline inflation rose from -0.1% in May to 0.2% in August, driven mainly by tourism and imported goods. The conditional inflation path — assuming the policy rate stays at 0% throughout the horizon — remains within the 0–2% stability band, averaging 0.2% in 2025, 0.5% in 2026, and 0.7% in 2027. Accordingly, policy remains accommodative but consistent with price stability.
The Bank still expects Swiss GDP growth of 1–1.5% in 2025, just under 1% in 2026, and further increases in unemployment. Export-oriented sectors such as machinery and watchmaking are most affected by tariffs, while services appear more resilient for now.
Press conference
President Martin Schlegel stressed the high bar for returning to negative rates: the SNB would only consider policy rates below zero if medium-term inflation moved outside the price stability band. He reiterated the lack of forward guidance — policy is set quarterly — and noted that the SNB is “not constrained” in its ability to intervene in FX markets whenever deemed appropriate.
EURCHF was essentially unchanged after the decision, which was largely priced in. The pair showed somewhat higher volatility than usual, though not significantly above the average for such events.
The material on this page does not constitute financial advice and does not take into account your level of understanding, investment objectives, financial situation or any other specific needs. All information provided, including opinions, market research, mathematical results and technical analyzes published on the Website or transmitted To you by other means, it is provided for information purposes only and should in no way be construed as an offer or solicitation for a transaction in any financial instrument, nor should the information provided be construed as advice of a legal or financial nature on which any investment decisions you make should be based exclusively To your level of understanding, investment objectives, financial situation, or other specific needs, any decision to act on the information published on the Website or sent to you by other means is entirely at your own risk if you In doubt or unsure about your understanding of a particular product, instrument, service or transaction, you should seek professional or legal advice before trading. Investing in CFDs carries a high level of risk, as they are leveraged products and have small movements Often the market can result in much larger movements in the value of your investment, and this can work against you or in your favor. Please ensure you fully understand the risks involved, taking into account investments objectives and level of experience, before trading and, if necessary, seek independent advice.
