FX.co ★ SNB Leaves Policy Rate Unchanged at 0%

The Swiss National Bank (SNB) has opted to maintain its policy rate at 0%, along with the 0.25 percentage point discount on sight deposits exceeding the established threshold. The SNB also reiterated its willingness to intervene in the foreign exchange markets if necessary. Inflationary pressures remain minimal, with inflation increasing slightly to 0.2% in August from a negative 0.1% reported in May, largely influenced by tourism and imported goods. The SNB forecasts inflation rates of 0.2% in 2025, 0.5% in 2026, and 0.7% in 2027, presuming the policy rate remains at 0%. Globally, growth decelerated in early 2025, hindered by U.S. tariffs and prevailing uncertainties, prompting the SNB to anticipate modest expansion moving forward. In Switzerland, GDP growth slowed to 0.5% in the second quarter, following a robust first quarter driven by pharmaceutical exports. Increased U.S. tariffs are expected to negatively impact exports and investment, particularly in the machinery and watchmaking sectors, though services continue to show resilience. The SNB projects GDP growth of 1-1.5% for 2025, tapering to just under 1% in 2026, with an anticipated further rise in unemployment.