SNB Holds Policy Rate at 0.00%, Revises Down Future Inflation Forecasts

By / / Breaking News

Key Takeaways

  • The Swiss National Bank (SNB) has maintained its policy interest rate at 0.00%, a decision widely anticipated by markets.
  • The SNB revised its inflation forecasts downwards for 2026 to 0.3% (from 0.5%) and for 2027 to 0.6% (from 0.7%), while keeping the 2025 forecast unchanged at 0.2%.
  • The central bank slightly upgraded its 2025 Swiss GDP growth forecast to around 1.5% (from a previous range of 1.0-1.5%) and maintained its 2026 GDP forecast at approximately 1%.
  • The SNB reiterated its readiness to intervene in the foreign exchange market as necessary, underscoring its commitment to maintaining price stability and supporting economic development.

The Swiss National Bank (SNB) announced today its decision to hold the policy rate steady at 0.00%, aligning with broad market expectations. This marks a continuation of its accommodative monetary policy stance, aimed at ensuring price stability and supporting the Swiss economy.

In its latest monetary policy assessment, the SNB adjusted its inflation projections for the coming years. The forecast for 2025 inflation remains at 0.2%. However, the central bank lowered its outlook for 2026 to 0.3% from the previous 0.5%, and for 2027 to 0.6% from 0.7%. These revisions suggest that the SNB anticipates persistent low inflationary pressures in the medium term.

Regarding economic growth, the SNB provided a slightly more optimistic outlook for the current year, raising its 2025 Swiss GDP forecast to around 1.5% from a prior range of 1.0-1.5%. The projection for 2026 Swiss GDP growth was maintained at approximately 1%. The SNB noted that the economic outlook for Switzerland has been influenced by factors such as higher U.S. tariffs, which are expected to dampen exports and investment, particularly in the machinery and watchmaking industries.

The central bank also reaffirmed its commitment to market intervention, stating it "remains willing to be active in the foreign exchange market as necessary." This readiness to act in the foreign exchange market provides the SNB with an additional tool to manage monetary conditions and counter any undue appreciation of the Swiss franc (CHF). Economists largely expect the SNB to maintain its zero interest rate policy throughout 2026, with a return to negative rates considered highly unlikely.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. We are not financial professionals. The authors and/or site operators may hold positions in the companies or assets mentioned. Always do your own research before making financial decisions.
Scroll to Top