SNB Holds Interest Rate at 0% as Swiss Inflation Reaches 0.8%

The Swiss National Bank (SNB) kept its policy rate unchanged at 0% following its monetary policy assessment on 22–23 September 2026. The decision was announced on 24 September, as policymakers judged that current monetary conditions remained appropriate to maintain price stability over the medium term.

Although Swiss inflation continued to rise, reaching 0.8% in August, the SNB attributed much of the increase to higher oil product prices. The central bank also highlighted resilient economic growth, a weaker Swiss franc and persistent uncertainty surrounding the global economic outlook.

SNB Keeps Policy Rate Unchanged at 0%

The SNB Governing Board, led by Chairman Martin Schlegel, decided to maintain the policy rate at 0% after reviewing financial markets, monetary indicators, international developments and Switzerland’s economic outlook.

The central bank said medium-term inflationary pressure was only slightly higher than at its June assessment. Inflation had increased primarily because of higher oil product prices, while core inflation had risen only modestly.

The SNB’s latest conditional inflation forecast indicated that inflation would remain within the range consistent with price stability throughout the forecast horizon.

The central bank also confirmed that it remained willing to intervene in foreign exchange markets when necessary to maintain appropriate monetary conditions. However, it said a greater willingness to intervene was no longer necessary under the current circumstances.

Stay updated on Federal Reserve decisions, interest rate policies, and officials’ latest statements to understand their potential impact on currency movements and financial markets. Explore our Central Banks section for the latest updates and insights.

Swiss Inflation Rises to 0.8%

Swiss consumer price inflation reached 0.8% in August 2026, continuing the increase observed since the previous monetary policy assessment.

The SNB identified higher prices for oil products as the main driver of imported inflation. Charges for inpatient hospital services also contributed to the August increase.

Core inflation remained relatively stable in recent months, although it had edged higher. The SNB’s trimmed-mean measure, known as TM15, stood at 0.6% in August.

Policymakers discussed the possibility that elevated energy prices could eventually spread into broader price increases. The SNB noted that the longer oil prices remained high, the greater the risk of second-round effects. However, it reported few signs that such effects were materialising at the time of the assessment.

The extent of any further inflationary pressure will depend partly on companies’ costs, overall capacity utilisation and their ability to pass higher expenses on to consumers.

Swiss Economic Growth Outlook Improves

The SNB reported exceptionally strong Swiss GDP growth in the second quarter of 2026, supported by unusually robust activity in the chemicals and pharmaceutical industries. Growth remained solid and broad-based even without this temporary boost.

Recent indicators suggested that economic momentum continued into the third quarter. Companies surveyed by the SNB reported robust turnover growth, stronger manufacturing activity, solid demand for services and continued strength in construction order books.

The central bank revised its 2026 GDP growth forecast to between 1.5% and 2.0%, reflecting stronger-than-expected second-quarter growth, revised historical data and the weaker Swiss franc.

For 2027, the SNB continued to expect GDP growth of approximately 1.5%.

Labour market indicators were mixed. Employment had increased, while unemployment had also risen slightly since the June assessment and remained somewhat elevated by historical standards.

The SNB expects inflation to increase somewhat in the short term because of higher energy prices, but to remain within the range consistent with price stability over the forecast period.

Stay informed about inflation reports and key economic data releases that can influence currency movements and global financial markets. Explore our Macroeconomic News for the latest economic updates and developments.

Swiss Franc Depreciation Eases Monetary Conditions

The Swiss franc had depreciated by approximately 3% in trade-weighted terms since the SNB’s June monetary policy assessment.

According to the central bank, the depreciation was consistent with widening interest rate differentials between Switzerland and other countries. Combined with relatively low exchange rate volatility, these differentials had increased the franc’s attractiveness as a funding currency for carry trades.

The SNB also noted that demand for the franc as a safe-haven asset had been limited since the previous assessment.

Despite a slight rise in interest rates, the depreciation of the currency outweighed the tightening effect of higher rates. As a result, the SNB concluded that overall monetary conditions had eased since June and that monetary policy continued to have an expansionary effect.

The central bank said excess liquidity remained consistent with price stability over the medium term.

Global Risks Continue to Cloud the Outlook

Global economic growth was stronger than expected in the second quarter, while international trade continued to expand. Consumer spending remained resilient despite the loss of purchasing power caused by higher energy prices. Investment related to artificial intelligence and stronger manufacturing activity also supported growth.

However, inflation remained above central bank targets in many countries, partly because of rising energy costs. Interest rates had increased in the euro area and the United States, contributing to tighter monetary conditions internationally.

The SNB identified several risks to the global economy:

• Middle East tensions: A further deterioration could weaken global economic activity and push energy prices higher.
• Energy-driven inflation: Higher oil prices could increase inflation and weaken consumer purchasing power.
• Trade policy uncertainty: Changes in international trade conditions could weigh on economic activity.
• Technology market valuations: High valuations in the technology sector could pose a financial risk.
• Fiscal policy risks: Uncertainty surrounding government finances and increased bond issuance could influence global bond markets.

The SNB also discussed whether investment in artificial intelligence could raise potential growth over the medium term. Such investment could support productivity, although the implications for employment and consumption remained uncertain.

Market Impact: What the SNB Decision Means for CHF

The decision to keep the policy rate at 0% provides no immediate rate change to reprice, making the SNB’s inflation outlook, currency assessment and future policy signals important considerations for forex traders.

The weaker Swiss franc has eased overall monetary conditions, while higher energy prices have contributed to rising inflation. These developments create competing considerations for policymakers: a weaker currency can support economic activity but may also increase the cost of imported goods, while persistent energy inflation could complicate the outlook for price stability.

For CHF pairs, traders may monitor future Swiss inflation releases, energy price developments, global interest rate expectations and any changes in the SNB’s assessment of foreign exchange intervention.

The decision alone does not establish a definitive direction for the Swiss franc. Broader risk sentiment and changes in interest rate differentials may also influence the currency.

Looking to understand currency pair movements through technical indicators and fundamental economic factors? Explore our Market Analysis section for in-depth forex analysis, market trends, and insights to support more informed trading decisions.

Conclusion

The Swiss National Bank kept its policy rate unchanged at 0% in September 2026, judging that current monetary conditions remained appropriate for maintaining medium-term price stability. Swiss inflation rose to 0.8% in August, largely because of higher oil product prices, while the SNB’s TM15 core inflation measure stood at 0.6%.

The central bank expects GDP growth of 1.5%–2.0% in 2026 and approximately 1.5% in 2027. However, uncertainty surrounding energy prices, Middle East tensions, trade policy and exchange rate developments remains significant. For forex markets, the SNB’s future inflation assessment and signals on the Swiss franc will remain important factors to watch.

Frequently Asked Questions

What is the SNB policy rate in September 2026?

The Swiss National Bank kept its policy rate unchanged at 0% following its monetary policy assessment on 22–23 September 2026. The decision was announced on 24 September.

Why did the Swiss National Bank leave interest rates unchanged?

The SNB judged that current monetary conditions were appropriate for maintaining price stability over the medium term. Although inflation had increased, policymakers said the rise was largely driven by higher oil product prices and that medium-term inflationary pressure was only slightly higher than at the June assessment.

What was Switzerland’s inflation rate in August 2026?

Swiss consumer price inflation reached 0.8% in August 2026. The SNB’s trimmed-mean core inflation measure, TM15, stood at 0.6%.

What is the SNB’s GDP growth forecast for 2026 and 2027?

The SNB forecast GDP growth of 1.5%–2.0% for 2026 and approximately 1.5% for 2027.

Could the SNB intervene in the foreign exchange market?

Yes. The SNB stated that it remained willing to intervene in the foreign exchange market when necessary to maintain appropriate monetary conditions. However, it said that an increased willingness to intervene was no longer necessary in the current environment.