Swiss National Bank Holds Interest Rates at 0%

The Swiss National Bank maintained its key interest rate at 0% on September 24, 2026, diverging from the tightening cycles of the Federal Reserve, the European Central Bank, and the Bank of Japan. While the bank judged current monetary policy appropriate for price stability, it revised its average inflation expectations upward to 0.7% for 2026 and 0.8% for 2027 and 2028.

Annual inflation rose to 0.8% in August, the highest level in nearly two years. Chairman Martin Schlegel attributed this increase almost exclusively to the cost of petroleum products, noting that while a dry summer influenced food prices, fuel was the primary driver. The bank expects inflation to remain within its 0% to 2% target through mid-2029 as crude oil prices eventually decrease.

Despite the hold, economists from UBS suggest that the recent depreciation of the Swiss franc against the euro and dollar could prompt rate hikes sooner than early 2027 to prevent accelerating inflation. Schlegel characterized this currency decline as a minor counter-trend following years of steady appreciation. The bank expects GDP growth of 1.5–2.0% in 2026 and approximately 1.5% in 2027, and remains prepared to intervene in foreign-exchange markets to support the economy.