SNB holds policy rate at 0% in September as inflation forecast edges higher
The Swiss National Bank held its policy rate at 0% on 24 September 2026. It raised its conditional inflation outlook but said inflation would remain within the range consistent with price stability throughout the forecast horizon.
View original sourceThe Swiss National Bank held its policy rate at 0% on 24 September 2026, maintaining its stance despite a higher conditional inflation forecast. The SNB said medium-term inflationary pressure had increased only slightly and judged monetary policy appropriate to maintain price stability while supporting economic development.
The decision extends the period of unchanged rates following the reduction to zero in June 2025. Each subsequent quarterly assessment has left the rate unchanged. That continuity contrasts with the earlier easing phase: the policy rate stood at 1.75% in December 2023 before successive reductions brought it to zero. September's assessment therefore preserves the existing setting rather than resuming those cuts.
Energy lifts inflation, with a retreat forecast for 2027
The SNB reported that inflation rose from 0.6% in May to 0.8% in August. It attributed the increase to goods inflation, which turned positive in August for the first time since May 2024, mainly because of higher oil-product prices. The distinction matters to the assessment: the bank described a further rise in current inflation but only a slight increase in medium-term pressure.
Its conditional forecast puts average annual inflation at 0.7% in 2026 and 0.8% in both 2027 and 2028. The SNB expects inflation to rise somewhat in the fourth quarter, then decline during 2027 as elevated energy inflation recedes, before edging higher again. It attributed the upward near-term forecast revision to higher-than-expected oil-product prices and the slightly higher medium-term outlook partly to a weaker Swiss franc.
The forecast remains within the SNB's price-stability range throughout its horizon, according to the bank. Crucially, it assumes a policy rate of 0% throughout that period: it is a conditional inflation projection, not a commitment to keep rates unchanged.
Implementation terms remain unchanged
Banks' sight deposits at the SNB will continue to earn the policy rate up to a threshold, with an unchanged discount of 0.25 percentage points above it. The SNB also reiterated its willingness to intervene in foreign exchange markets as necessary to ensure appropriate monetary conditions. That statement expresses readiness to act, rather than announcing an intervention.
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