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The Swiss National Bank left its policy rate at 0% on Thursday, 24 September 2026. The Swiss National
Bank decision stands out because its neighbours went the other way. In its own statement, the SNB noted
that key rates were raised both in the euro area and in the US. Switzerland can afford to wait, for now,
because its inflation remains low.
What the Swiss National Bank decision kept in place
The policy rate stays at 0%. Banks’ sight deposits at the SNB earn that rate up to a threshold. Above
it, the discount remains 0.25 percentage points. The bank also repeated that it is willing to act in the
foreign exchange market as necessary. Those details come from the
SNB’s monetary policy assessment.
The SNB called its stance "appropriate" to keep inflation within the range it defines as price
stability. That range is 0% to 2%.
The inflation picture behind the hold
Prices are rising, just slowly. Swiss inflation climbed from 0.6% in May to 0.8% in August. Goods
inflation turned positive in August for the first time since May 2024. Higher prices for oil products
drove most of that move.
The SNB expects inflation to rise a little further in the fourth quarter. It then sees it easing
during 2027 as energy inflation fades. Its conditional forecast reads:
- 2026: 0.7% average inflation
- 2027: 0.8%
- 2028: 0.8%
That path stays inside the target band throughout. It assumes the policy rate holds at 0% over the
whole horizon. The bank said the medium-term forecast edged up partly because the Swiss franc has
weakened.
Why the Swiss National Bank decision diverges from the Fed and ECB
The contrast with other big central banks is the story. The US Federal Reserve raised its target range
to 3.75%-4.00% in September, its first hike since 2023, as CNBC reported.
Our coverage of the Fed’s rate hike explains
what drove that vote. The European Central Bank also tightened, as set out in our report on the
ECB interest rate hike.
Both face inflation above their 2% goals, much of it tied to energy. Switzerland does not. Its inflation
sits well below 1%. That gives the SNB room to hold while others squeeze.
A weaker franc helps the Swiss economy in the short run. The SNB said the recent depreciation is
having a supportive effect on growth.
The global backdrop matters here. The SNB noted that key rates rose in both the euro area and the US,
while inflation in many countries stayed above target on higher energy prices. Its own base case sees
moderate global growth ahead. It also sees inflation staying elevated for some time. That external picture
shapes how long Switzerland can keep its own rate at zero.
What the SNB expects for the Swiss economy
Second-quarter GDP growth was exceptionally strong. The SNB said an unusual surge in chemicals and
pharmaceuticals overstated the underlying pace. Even without it, growth was solid and broad-based.
There are soft spots. Capacity use sat below average, especially in manufacturing. Unemployment rose
again somewhat through early summer. The bank now expects growth of 1.5% to 2% for 2026, and around 1.5%
for 2027.
Where Swiss rates go from here
The SNB flagged the Middle East as the biggest risk. If energy prices end up significantly higher,
inflation would rise and growth would slow. Trade policy and exchange rates remain further sources of
uncertainty.
For savers and borrowers in Switzerland, little changes today. Mortgage and deposit rates tied to the
policy rate should stay near current levels. For currency watchers, the key variable is the franc. A much
weaker franc would push imported inflation up and test the 0% setting. The SNB holds its assessments
quarterly, so the next scheduled decision falls in December.
Swiss rate questions, answered
What did the Swiss National Bank decide?
On 24 September 2026 the SNB left its policy rate unchanged at 0%. The discount on sight deposits above the exemption threshold also stayed at 0.25 percentage points.
Why did the SNB hold while other central banks raised rates?
Swiss inflation is still inside the SNB’s 0-2% target range. It stood at 0.8% in August. The US Federal Reserve and the European Central Bank face inflation above target, which pushed them to hike.
What is the SNB’s inflation forecast?
The conditional forecast puts average inflation at 0.7% for 2026, 0.8% for 2027 and 0.8% for 2028. It assumes the policy rate stays at 0% throughout.
Will the SNB intervene in currency markets?
The SNB said it remains willing to be active in the foreign exchange market as necessary. It did not say whether it has intervened recently.
How fast is the Swiss economy growing?
The SNB expects growth of 1.5% to 2% in 2026 and around 1.5% in 2027. It said strong second-quarter GDP partly reflected an unusual boost from chemicals and pharmaceuticals.
What is the main risk the SNB flagged?
The situation in the Middle East. The SNB warned that energy prices could turn out significantly higher than expected, which would raise inflation and curb growth.
Sources
- Swiss National Bank — Monetary policy assessment of 24 September 2026. snb.ch
- CNBC — Fed rate decision September 2026: Rates rise to 3.75%-4%. cnbc.com
Images: featured photo by Robbie Conceptuel (CC0); in-article photo by TravelingOtter, licensed CC BY.
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