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Switzerland Interest Rate
Last Release
Sep 26, 2024
Actual
1
Units In
%
Previous
1.25
Frequency
Daily
Next Release
N/A
Time to Release
N/A
Highest | Lowest | Average | Date Range | Source |
3.5 Jun 2000 | -0.75 Jan 2015 | 0.62 % | 2000-2024 | Swiss National Bank |
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.
Latest Updates
The Swiss National Bank cut its key policy rate by 25 bps to 1% in September 2024, a third consecutive reduction and pushing borrowing costs to the lowest since early 2023, in line with market expectations. Policymakers added they remain willing to be active in the foreign exchange market as necessary and further interest rate cuts may become necessary in the coming quarters to ensure price stability over the medium term. The central bank noted that inflationary pressure in Switzerland has again decreased significantly compared to the previous quarter. Among other things, this decrease reflects the appreciation of the Swiss franc over the last three months. Inflation in Switzerland eased to 1.1% in August. The central bank revised its inflation forecasts lower for 2024 (1.2% vs 1.3%), 2025 (0.6% vs 1.1%) and 2026 (0.7% vs 1%). Forecasts for GDP growth however, were maintained at around 1% in 2024 and 1.5% in 2025.
Switzerland Interest Rate History
Last 12 readings