Swiss National Bank leaves interest rates unchanged at 0%, as expected
|The Swiss National Bank (SNB) holds interest rates steady at 0%, as expected. Now investors await Chairman Martin Schlegel's upcoming press conference at 09:00 GMT, where they will be looking for fresh cues on the monetary policy outlook.
SNB's monetary statement highlights
Banks’ sight deposits held at the SNB will be remunerated at the SNB policy rate up to a certain threshold.
SNB remains willing to be active in the foreign exchange market as necessary.
Inflationary pressure is virtually unchanged compared to the last monetary policy assessment.
SNB sees 2025 inflation at 0.2% (previous forecast was for 0.2%).
SNB sees 2026 inflation at 0.3% (previous forecast was for 0.5%).
SNB sees 2027 inflation at 0.6% (previous forecast was for 0.7%).
SNB sees 2025 Swiss GDP at around 1.5% (previous forecast was for 1.0-1.5%).
SNB sees 2026 Swiss GDP at around 1% (previous forecast was for around 1%).
Main risk to the economic outlook for Switzerland is the development of the global economy.
Economic outlook for Switzerland has improved slightly due to the lower us tariffs and somewhat better development globally.
Although US tariffs and trade policy uncertainty weighed on the global economy, economic development in many countries has thus far remained more resilient than had been assumed.
Baseline scenario anticipates that growth in the global economy will be moderate over the coming quarters.
US tariffs and trade policy uncertainty could yet weigh more heavily on global economic momentum than observed thus far.
Market reaction
The initial reaction to the SNB's policy on the Swiss Franc (CHF) seems positive. The USD/CHF falls to near 0.7990 as of writing.
Swiss Franc Price Today
The table below shows the percentage change of Swiss Franc (CHF) against listed major currencies today. Swiss Franc was the strongest against the Australian Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.09% | 0.08% | -0.02% | 0.14% | 0.52% | 0.25% | -0.15% | |
| EUR | 0.09% | 0.17% | 0.05% | 0.22% | 0.62% | 0.34% | -0.06% | |
| GBP | -0.08% | -0.17% | -0.08% | 0.06% | 0.46% | 0.18% | -0.22% | |
| JPY | 0.02% | -0.05% | 0.08% | 0.15% | 0.56% | 0.25% | -0.12% | |
| CAD | -0.14% | -0.22% | -0.06% | -0.15% | 0.40% | 0.11% | -0.28% | |
| AUD | -0.52% | -0.62% | -0.46% | -0.56% | -0.40% | -0.28% | -0.67% | |
| NZD | -0.25% | -0.34% | -0.18% | -0.25% | -0.11% | 0.28% | -0.40% | |
| CHF | 0.15% | 0.06% | 0.22% | 0.12% | 0.28% | 0.67% | 0.40% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Swiss Franc from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent CHF (base)/USD (quote).
This section was published as a preview of the Swiss National Bank's (SNB) monetary policy announcement at 06:35 GMT.
The Swiss National Bank (SNB) is scheduled to announce its last monetary policy of 2025 today at 08:30 GMT.
The SNB is expected to hold interest rates steady at 0% for the second meeting in a row. The Swiss central bank would continue maintaining an expansionary monetary policy stance as price pressures have remained close to the lower end of 0%-2% inflation target. In November, the Swiss inflation remains flat on an annualized basis, following a 0.1% growth in October.
As the SNB is widely anticipated to leave borrowing rates at 0%, the major trigger for the Swiss Franc’s (CHF) outlook will be the monetary policy guidance for 2026. The SNB is unlikely to support negative interest rates as Chairman Martin Schlegel stated in his comments in early November that the "bar to go back to NIRP (negative interest rate policy) is very high”, citing that the ultra-dovish stance could lead to "undesirable side effects" on savers and pension funds.
How could SNB’s monetary policy outcome affect USD/CHF?
USD/CHF strives to gain ground during Thursday’s European session after revisiting its three-week low of 0.7985 the previous day. The Swiss Franc pair demonstrates a broader sideways trend amid a Descending Triangle formation whose horizontal support is placed from the November 19 low of 0.7985, while the downward-sloping border is plotted from the November high of 0.8124. The near-term trend of the pair is bearish as it stays below the 20-day Exponential Moving Average (EMA), which is at 0.8030
The 14-day Relative Strength Index (RSI) at 45.23, below the 50 midline, signals waning bullish momentum. A rebound in RSI toward 50 would signal stabilization.
The downward-sloping border limits gains, with resistance seen near 0.8078. However, a daily close above that barrier could ease pressure and tilt the bias toward recovery for an upside to near the August high of 0.8171, while failure to reclaim it would keep sellers in control. Looking down, bears could gain control if the pair breaks below the November 19 low of 0.7985, and extend the decline towards the November 18 low of 0.7938.
SNB FAQs
The Swiss National Bank (SNB) is the country’s central bank. As an independent central bank, its mandate is to ensure price stability in the medium and long term. To ensure price stability, the SNB aims to maintain appropriate monetary conditions, which are determined by the interest rate level and exchange rates. For the SNB, price stability means a rise in the Swiss Consumer Price Index (CPI) of less than 2% per year.
The Swiss National Bank (SNB) Governing Board decides the appropriate level of its policy rate according to its price stability objective. When inflation is above target or forecasted to be above target in the foreseeable future, the bank will attempt to tame excessive price growth by raising its policy rate. Higher interest rates are generally positive for the Swiss Franc (CHF) as they lead to higher yields, making the country a more attractive place for investors. On the contrary, lower interest rates tend to weaken CHF.
Yes. The Swiss National Bank (SNB) has regularly intervened in the foreign exchange market in order to avoid the Swiss Franc (CHF) appreciating too much against other currencies. A strong CHF hurts the competitiveness of the country’s powerful export sector. Between 2011 and 2015, the SNB implemented a peg to the Euro to limit the CHF advance against it. The bank intervenes in the market using its hefty foreign exchange reserves, usually by buying foreign currencies such as the US Dollar or the Euro. During episodes of high inflation, particularly due to energy, the SNB refrains from intervening markets as a strong CHF makes energy imports cheaper, cushioning the price shock for Swiss households and businesses.
The SNB meets once a quarter – in March, June, September and December – to conduct its monetary policy assessment. Each of these assessments results in a monetary policy decision and the publication of a medium-term inflation forecast.
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