Swiss National Bank holds its rate at 0% for a third straight quarter as inflation edges up on energy prices

The Swiss National Bank left its policy rate unchanged at 0% at its quarterly monetary policy assessment on 24 September 2026, as previewed the week before (preview). It is the third consecutive quarterly assessment in 2026, after March and June, at which the SNB has held the rate at zero.

The decision and the intervention line

Banks' sight deposits at the SNB continue to be remunerated at the policy rate up to a threshold, with a discount of 0.25 percentage points above it, unchanged. The SNB repeated that it "is also willing to be active in the foreign exchange market as necessary to ensure appropriate monetary conditions," the same intervention language from June that currency traders watch most closely, since the Swiss franc tends to strengthen sharply as a safe haven in periods of geopolitical stress.

Why the Bank held

• Inflation rose from 0.6% in May to 0.8% in August, driven by goods inflation turning positive in August for the first time since May 2024, mainly on higher oil product prices
• The updated forecast puts average annual inflation at 0.7% for 2026, 0.8% for 2027 and 0.8% for 2028, all within the SNB's price-stability range; the near-term figure is higher than in June's forecast because of the oil-product price rise, and the medium-term figure is slightly higher too, partly reflecting the weaker franc
• Global growth was stronger than expected in the second quarter, and the euro area and US both raised their key rates recently
• Swiss GDP growth was exceptionally strong in the second quarter, though the SNB says an unusually robust pharmaceuticals sector overstated the underlying pace; even without that effect, it calls growth solid and broad-based
• The SNB expects growth of 1.5% to 2% for 2026 as a whole and around 1.5% for 2027, with growth stimuli continuing to come from abroad and support from monetary policy and the franc's recent depreciation

The main risks the SNB names are a further deterioration in the Middle East situation, the trade policy environment and exchange rate developments.

What it means for the franc

A central bank holding at 0% with inflation still inside its target range gives the SNB little reason to change tack, but the repeated intervention wording matters more than the rate itself for USD/CHF and franc crosses more broadly: it signals the SNB would act again if the franc rose too quickly, as it has before. Safe-haven currencies explained covers why the franc and yen behave this way, and the Bank of Japan raised its own rate on 18 September, narrowing one part of that safe-haven gap (report). The next SNB assessment is in December 2026.