SNB leaves key coverage price unchanged at 0% in June assembly, as extensively anticipated

• Prior 0.00%
• SNB sees 2026 inflation at 0.6% (previously 0.5%)
• SNB sees 2027 inflation at 0.6% (previously 0.5%)
• SNB sees 2028 inflation at 0.7% (previously 0.6%)
• SNB sees 2026 growth at 1% (previously 1%)
• SNB sees 2027 growth at 1.5% (previously 1.5%)
• Readiness to intervene in forex markets is higher
• Medium-term inflationary pressure is virtually unchanged compared with the last monetary policy assessment
• SNB’s monetary policy is appropriate to keep inflation within the range consistent with price stability and it supports economic development
• The baseline scenario remains subject to high uncertainty, above all because the situation in the Middle East is still fragile
• In the medium term, the expected improvement in the global economy will provide growth impetus
• The main risk to the economic outlook for Switzerland is developments in the global economy. In particular, the situation in the Middle East could worsen again and curb global economic activity more strongly
• Full statement here

The Swiss National Bank (SNB) left its policy rate unchanged at 0.00% as widely expected reiterating confidence that current monetary settings remain sufficient to preserve price stability while maintaining flexibility to respond to external shocks.

The central bank slightly upgraded its inflation outlook across the forecast horizon, though price pressures remain subdued. The SNB now expects inflation to average 0.6% in 2026, up from the previous forecast of 0.5%, while projections for 2027 were also raised to 0.6% from 0.5%. Inflation for 2028 is now seen at 0.7%, compared with 0.6% previously.

Despite these upward revisions, policymakers emphasized that medium-term inflationary pressures are virtually unchanged from the previous monetary policy assessment. The SNB said its current stance remains appropriate to keep inflation within the range consistent with price stability and to support economic development.

Growth forecasts were left unchanged, suggesting the SNB sees the domestic economy on a stable trajectory. Swiss GDP is projected to expand by 1.0% in 2026 and 1.5% in 2027, matching prior estimates.

One of the key takeaways from the decision was the SNB’s reaffirmation that it stands ready to act in currency markets, with policymakers stressing that their readiness to intervene in foreign exchange markets has increased. This underscores the central bank’s continued sensitivity to Swiss franc strength, which remains a major channel through which imported disinflation could intensify.

The central bank acknowledged that global conditions remain highly uncertain. The SNB noted that its baseline scenario is subject to high uncertainty, particularly because the situation in the Middle East remains fragile.

While policymakers still expect an eventual improvement in global growth to support Switzerland’s export-oriented economy over the medium term, they warned that renewed escalation in the region could significantly weaken global activity.