The Swiss National Bank left its policy rate unchanged at 0% in March 2026. It continues to remunerate sight deposits at this rate up to a specified threshold, applying a discount of 0.25 percentage points on balances above that level. Against the backdrop of conflict in the Middle East, the SNB signaled a stronger readiness to intervene in foreign exchange markets to counter excessive appreciation of the Swiss franc and safeguard price stability.
Inflation has inched up, reaching 0.1% in February. Rising energy prices are expected to push inflation somewhat higher in the near term, although underlying medium-term pressures remain contained. The SNB projects average inflation of 0.5% for both 2026 and 2027, and 0.6% for 2028.
Global economic growth was robust at the end of last year, but higher energy costs and ongoing geopolitical tensions are heightening uncertainty and could dampen activity. The Swiss economy recorded modest growth, with GDP rebounding in the fourth quarter, and is forecast to expand by around 1% in 2026, though the outlook remains closely tied to global developments.
