Swiss economy in 2025: Continued easing, moderate growth, low inflation
The Swiss National Bank published its 2025 Annual Report on March 17, 2026, detailing continued monetary easing, moderate economic growth, and low inflation. The report highlights two rate cuts in 2025 and a focus on non-bank financial intermediary risks.
SNB cuts policy rate to zero amid low inflation
The Swiss National Bank continued its monetary policy easing in 2025, implementing two 0.25 percentage point cuts in March and June, which brought the policy rate from 0.5 percent down to 0 percent.
The rate was then held steady in September and December, as inflationary pressures stabilized and the accommodative stance continued to support the Swiss economy.
Switzerland's inflation, measured by the Consumer Price Index, declined in the first half of 2025, stabilizing at the lower end of the SNB's 0 to 2 percent price stability range in the second half.
The annual average inflation rate fell from 1.1 percent in 2024 to 0.2 percent in the reporting year, primarily due to lower domestic goods and services inflation.
The Swiss economy grew by 1.4 percent in 2025, marking a third consecutive year of below-average expansion.
Moderate foreign demand and higher US import tariffs weighed on industrial output, while the services sector showed relative dynamism.
The labor market continued to lose momentum.
Global headwinds and financial stability focus
The global economy saw moderate growth in 2025, despite US trade policy uncertainties.
Global resilience was partly supported by monetary easing in various countries.
The SNB intensified its analysis of financial stability risks from non-bank financial intermediaries (NBFIs).
The central bank's 2025 financial results reported a profit of CHF 26.1 billion, down from CHF 80.7 billion in the previous year.
This allowed for a CHF 15 per share dividend and a CHF 4 billion distribution to the Confederation and cantons.
The renovation of the Kaiserhaus in Bern, set to house offices and the 'Moneyverse' visitor center, neared completion in 2025, with reopening in April 2026.
Navigating a complex landscape
The 2025 Annual Report confirms the SNB's commitment to price stability and its proactive easing in a challenging global environment.
Despite subdued domestic growth, the central bank's actions successfully anchored inflation within its target range.
The significant drop in profit, however, highlights the inherent volatility of central bank balance sheets.