Policy rate held at 0 percent as inflation reaches 0.8 percent
The Swiss National Bank has kept its policy rate unchanged at 0 percent at its monetary policy assessment on September 24, 2026. Sight deposits above the set threshold remain subject to an interest rate discount of 0.25 percentage points.
Energy costs lift inflation forecast
Swiss inflation rose from 0.6 percent in May to 0.8 percent in August 2026, driven primarily by higher prices for petroleum products.
Goods inflation turned positive for the first time since May 2024.
The conditional inflation forecast now projects average inflation at 0.7 percent in 2026, 0.8 percent in 2027 and 0.8 percent in 2028, assuming the policy rate remains at 0 percent throughout the horizon.
The upward revision over the short term reflects elevated oil prices, while medium-term pressures also reflect the depreciation of the Swiss franc.
The central bank confirmed its readiness to intervene in the foreign exchange market to maintain appropriate monetary conditions.
Pharma surge flatters headline growth
Swiss gross domestic product expanded strongly in the second quarter, largely due to extraordinary output in the chemical and pharmaceutical industry.
Beyond this sector-specific surge, underlying expansion remained solid.
However, industrial capacity utilization stayed below average, and unemployment ticked up into early summer.
For 2026, the central bank projects GDP growth of 1.5 to 2.0 percent, supported by foreign demand, policy support and the weaker franc, before moderating to around 1.5 percent in 2027.
No reason to leave zero
The decision confirms that Swiss policy remains firmly on cruise control.
With projected inflation comfortably below one percent, the central bank avoids the tightening pressures facing peers in Frankfurt and Washington.
Holding the zero rate offers domestic stability while leaving full flexibility for currency market intervention.