Swiss National Bank sticks with zero interest rate
- On Thursday, June 18, 2026, the Swiss National Bank kept its benchmark interest rate unchanged at 0%, extending a full year of record-low borrowing costs among major central banks.
- Inflation in Switzerland increased to 0.6% in May from 0.1% in February, driven by higher fuel costs stemming from the Iran conflict that the SNB cited in its statement.
- Martin Schlegel, chairman of the SNB's Governing Board, said the bank maintains an "increased willingness to intervene" in foreign exchange markets to counter "rapid and excessive appreciation" of the Swiss franc.
- The bank warned that global economic uncertainty remains a key risk, while potential intervention could draw criticism from President Donald Trump, who has previously attacked Swiss currency strategy.
- Swiss economic activity is expected to remain resilient, with growth projected to reach around 1% in 2026, despite persistent uncertainty regarding global inflation and development.
16 Articles
16 Articles
Swiss National Bank Holds Interest Rate at Zero Amid Inflation Risks
The Swiss National Bank (SNB) has left its benchmark interest rate unchanged at zero percent, saying inflation remains low despite rising energy costs and the uncertainty surrounding the conflict in the Middle East. The decision keeps borrowing costs at their current level after inflation rose from 0.1 percent in February to 0.6 percent in May. “This increase was mainly attributable to higher prices for oil products,” the bank said in a June 18 …
Swiss central bank holds interest rates as it eyes risk on currency
Switzerland's central bank left interest rates unchanged at zero percent on Thursday, a move widely expected by analysts, but said it was watching out for signs of upward pressure on the Swiss franc currency.
The central banks of Switzerland and Norway today maintained their reference interest rates at 0% and 4.25%, respectively, with the Swiss monetary authority accepting foreign exchange intervention. The Swiss National Bank decided to maintain the reference interest rate at 0% and stated that it increased the availability to intervene in the foreign exchange market, if it deemed it necessary. The central bank stressed that, in this way, it could c…
Although inflation has also increased in Switzerland due to the Iran war, it is still at a low level. The SNB is still prepared to intervene "if necessary" in the foreign exchange market if the franc is to grow rapidly and excessively.
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