The Swiss National Bank left its policy rate unchanged at 0% in its quarterly assessment of 24 September 2026. In the same announcement, it said it remains willing to intervene in the foreign exchange market as needed to keep monetary conditions appropriate.
What happened
According to the SNB's release, sight deposits (money banks hold at the central bank) earn the policy rate up to a threshold, and the discount applied above that threshold stays at 0.25 percentage points.
The bank reported that Swiss inflation rose from 0.6% in May to 0.8% in August, mostly because of higher prices for oil products. It also noted that goods inflation turned positive in August for the first time since May 2024. Its conditional forecast, which assumes a 0% policy rate, sees inflation rising somewhat in the fourth quarter of 2026 and then declining through 2027. Average annual inflation is projected at 0.7% for 2026 and 0.8% for each of 2027 and 2028.
On growth, the SNB said second-quarter GDP was strong but overstated underlying momentum because of a one-off boost from chemicals and pharmaceuticals. It expects growth of 1.5% to 2% in 2026. It named the situation in the Middle East as the main risk, along with trade policy and exchange rates, and noted that the recent weakening of the franc supports the economy.
Why it matters for traders
Swiss franc pairs are shaped by two things at once: interest-rate differentials against other central banks, and the SNB's stated readiness to step into the currency market. That can make franc moves sharper and less predictable than the interest-rate gap alone would suggest, especially around quarterly assessments.
When most major central banks are moving rates and the SNB is not, the franc's rate gap changes even without any Swiss decision. For leveraged positions this shows up in financing charges, so it is worth reading the swap table before holding franc trades overnight.
What to watch
- Swiss monthly inflation releases and the SNB's next quarterly assessment.
- Any SNB comments on foreign exchange activity.
- Liquidity and spreads on franc pairs around announcement times.
Sources
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