Stocks Market
Swiss National Bank Holds Policy Rate at 0% Amid Rising Inflation and Growth Uncertainty
The Swiss National Bank (SNB) kept its key interest rate unchanged at 0% in September 2026, in line with market expectations. Inflation has risen from 0.6% in May to 0.8% in August, driven by higher energy costs, but the central bank judges its current monetary stance as appropriate for ensuring price stability and supporting economic growth. The SNB forecasts average inflation of 0.7% for 2026 and 0.8% for both 2027 and 2028, while projecting GDP growth of 1.5–2% this year and around 1.5% in 2027. However, the outlook remains clouded by significant uncertainties, including Middle East tensions, global growth trends, trade policies, and exchange‑rate volatility. The bank reiterated its willingness to intervene in the foreign‑exchange market if necessary.
Listen to this article
Unlock audio versions of premium articles and more with a Pro subscription.
Rate Decision Unchanged
The Swiss National Bank (SNB) announced on Thursday that it is holding its policy rate at 0%, a level it has maintained since mid‑2025. The decision was widely anticipated by financial markets and reflects the bank’s assessment that the current monetary stance remains appropriate for preserving price stability while underpinning economic activity.
Inflation Trajectory
Swiss inflation has accelerated in recent months, climbing from 0.6% in May to 0.8% in August. The uptick is largely attributed to rising energy prices. The SNB expects a further pickup in the fourth quarter of 2026 before a gradual moderation toward 2027.
Updated Forecasts
- Inflation: 0.7% average in 2026, 0.8% in 2027, and 0.8% in 2028.
- GDP Growth: 1.5%–2.0% in 2026, approximately 1.5% in 2027.
Risks and Uncertainty
The central bank emphasized that the economic outlook is subject to “strong uncertainty.” Key risk factors include geopolitical tensions in the Middle East, the trajectory of global growth, evolving trade policies, and exchange‑rate fluctuations.
Foreign‑Exchange Intervention Stance
The SNB reiterated its readiness to act in the currency market if required, signaling that it stands prepared to counter excessive franc appreciation or disorderly market conditions.