The Swiss National Bank reduced its key policy rate by 25 bps to 1.5% in March 2024, marking the first cut in nine years, a surprise move that made it the first major central bank to ease monetary policy. The cut comes after Swiss inflation fell to 1.2% in February, the ninth consecutive month that prices have been moving within the SNB's 0-2% target range, indicative of price stability. The central bank said it was taking into account the reduced inflationary pressure as well as the appreciation of the Swiss franc in real terms over the past year. Policymakers anticipate inflation to remain within the range of price stability over the next few years, and will closely monitor it to ensure it stays within this range. The SNB forecasts average annual inflation at 1.4% for 2024, 1.2% for 2025 and 1.1% for 2026. Meanwhile, economic growth is likely to remain modest in the coming quarters, with growth rate seen around 1% this year. source: Swiss National Bank
The benchmark interest rate in Switzerland was last recorded at 1.50 percent. Interest Rate in Switzerland averaged 0.61 percent from 2000 until 2024, reaching an all time high of 3.50 percent in June of 2000 and a record low of -0.75 percent in January of 2015. This page provides - Switzerland Interest Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news. Switzerland Interest Rate - data, historical chart, forecasts and calendar of releases - was last updated on May of 2024.
The benchmark interest rate in Switzerland was last recorded at 1.50 percent. Interest Rate in Switzerland is expected to be 1.50 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. In the long-term, the Switzerland Interest Rate is projected to trend around 1.00 percent in 2025, according to our econometric models.
Switzerland Interest Rate
In Switzerland, interest rate decisions are taken by the Swiss National Bank. The official interest rate is the SNB policy rate. The SNB seeks to keep the secured short-term Swiss franc money market rates close to the SNB policy rate. SARON is the most representative of these rates today. As of 13 June 2019, the SNB policy rate replaced the target range for the three-month Swiss franc Libor (London Interbank Offered Rate) previously used in the SNB's monetary policy strategy. The reason for this adjustment was that the Libor was becoming less relevant as the most important reference rate owing to the absence of the underlying money market transactions. From 6 September 2011 to 15 January 2015, the main focus of implementation was on the minimum exchange rate of CHF 1.20 per euro, which the SNB enforced during this period. On 18 December 2014, the SNB decided to impose an interest rate of -0.25% on sight deposit account balances. With the announcement of a negative interest rate, the Libor target range used then was taken into negative territory for the first time, and extended to its usual width of 1 percentage point. On 15 January 2015, the SNB lowered the interest rate on sight deposits to -0.75% and moved the target range downwards to between -1.25% and -0.25%. Negative interest has applied since 22 January 2015 and currently corresponds to the SNB policy rate.
| Actual | Previous | Highest | Lowest | Dates | Unit | Frequency | ||
|---|---|---|---|---|---|---|---|---|
| 1.50 | 1.50 | 3.50 | -0.75 | 2000 - 2024 | percent | Daily |
News Stream
SNB Unexpectedly Cuts Policy Rate
The Swiss National Bank reduced its key policy rate by 25 bps to 1.5% in March 2024, marking the first cut in nine years, a surprise move that made it the first major central bank to ease monetary policy. The cut comes after Swiss inflation fell to 1.2% in February, the ninth consecutive month that prices have been moving within the SNB's 0-2% target range, indicative of price stability. The central bank said it was taking into account the reduced inflationary pressure as well as the appreciation of the Swiss franc in real terms over the past year. Policymakers anticipate inflation to remain within the range of price stability over the next few years, and will closely monitor it to ensure it stays within this range. The SNB forecasts average annual inflation at 1.4% for 2024, 1.2% for 2025 and 1.1% for 2026. Meanwhile, economic growth is likely to remain modest in the coming quarters, with growth rate seen around 1% this year.
2024-03-21
Switzerland Leaves Rates Steady as Expected
The Swiss National Bank kept its key policy rate unchanged at 1.75% for a second consecutive meeting in December 2023, in line with forecasts, saying inflationary pressure has decreased slightly. However, policymakers noted that uncertainty remains high and will continue to monitor the development of inflation closely, and will adjust its monetary policy if necessary to ensure inflation remains within the range consistent with price stability over the medium term. Inflation in Switzerland slowed to 1.4% in November, the lowest rate since October 2021, but it is likely to increase again somewhat in the coming months due to higher electricity prices and rents, as well as the rise in VAT. The central bank sees average annual inflation at 2.1% for 2023, 1.9% for 2024 and 1.6% for 2025. Meanwhile, economic growth is likely to be weak in the coming quarters, with the 2023 growth rate seen around 1% while for 2024, the central bank expects it between 0.5% and 1%.
2023-12-14
Switzerland Unexpectedly Halts Rate Hikes
The Swiss National Bank unexpectedly kept its benchmark policy rate steady at 1.75% in its September 2023 meeting, saying the significant tightening of monetary policy over recent quarters is countering remaining inflationary pressure. It marks a pause in the rate-hike campaign that started in June last year, compared to market forecasts of a 25bps increase. However, policymakers added that it cannot be ruled out that a further tightening of monetary policy may become necessary to ensure price stability over the medium term and will monitor the development of inflation closely in the coming months. Meanwhile, inflation forecasts were kept at 2.2% for both 2023 and 2024 and the GDP growth for the Swiss economy is seen at around 1% this year, little changed from the previous forecast. The annual inflation rate in Switzerland was unchanged at 1.6% in August, remaining at its lowest since January 2022 and the economy stalled in Q2.
2023-09-21
