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SNB was first to cut in 2024 and cut most aggressively — Swiss inflation uniquely low
The SNB cut its policy rate from 1,75% to 1,50% in March 2024 — becoming the first major central bank to cut in the 2024 easing cycle. By January 2026, the rate is 0,25% after four cuts. Swiss inflation at 1,5% is the lowest among developed economies — well within the SNB 0-2% target band. The strong CHF provides a natural inflation dampener through cheap imports. Switzerland's structural low inflation (services less than 2%, goods near 1%) allows rates far below eurozone or UK levels.
Source: SNB quarterly monetary policy assessment 2025
CHF remains a safe-haven currency — SNB intervenes to prevent excessive appreciation
The Swiss franc appreciates during global risk-off episodes — investors buy CHF as a safe haven. The SNB has historically intervened in currency markets to limit CHF strength, which would hurt Swiss exporters (machinery, pharma, watches) and suppress inflation below target. The SNB foreign exchange reserves exceeded CHF 700 billion at their peak. In 2026, EUR/CHF at approximately 0,94 is above the SNB's most uncomfortable levels (EUR/CHF 0,90 floor abandoned 2015). The SNB accepts the strong franc as a disinflation tool.
Source: SNB Annual Report 2025
Negative rate era (2015-2022) reshaped Swiss banking — deposits fled to real estate
Switzerland maintained the world's most negative policy rate (−0,75%) from 2015 to 2022 — driven by need to deter safe-haven CHF inflows. This reshaped Swiss household finances: banks passed negative rates to large depositors, driving capital into Swiss real estate and equity. Swiss real estate prices rose 30-40% over the period. The SNB's exit from negative rates (June 2022, first hike to −0,25%) was widely welcomed. The return toward near-zero rates in 2026 does not signal a return to negative — the structural need for negative rates was eliminated by ECB rate normalisation.
Source: SNB Financial Stability Report 2025
SNB Policy Rate History 2015–2026 (%)
Swiss National Bank
📋 Reference Data
SNB Policy Rate History 2022–2026
Swiss National Bank
| Date | SNB Rate | Change | Context |
|---|---|---|---|
| Jan 2026 | 0,25% | — | Near-zero; first major CB at this level |
| Dec 2025 | 0,25% | −25bp | Fourth cut — approaching zero again |
| Sep 2025 | 0,50% | −25bp | Third cut |
| Jun 2025 | 0,75% | −25bp | Second cut — decisive easing pace |
| Mar 2024 | 1,50% | −25bp | FIRST CUT — first major CB to cut in 2024 |
| Jun 2023 | 1,75% | +25bp | PEAK |
| Mar 2023 | 1,50% | +50bp | Fifth hike |
| Dec 2022 | 1,00% | +50bp | Fourth hike |
| Sep 2022 | 0,50% | +75bp | Third hike — exit from negative territory |
| Jun 2022 | −0,25% | +50bp | Second hike — first positive rate since 2014 |
| Mar 2022 | −0,75% | — | Still negative — last negative meeting |
| Jan 2015 | −0,75% | Emergency | Negative rate introduced after EUR/CHF floor abandoned |
ⓘ SNB meets quarterly (March, June, September, December). The SNB rate is the interest rate the SNB charges on banks' sight deposits above a threshold. The negative rate era (2015-2022) was the longest globally. Switzerland was first to cut in 2024 and is approaching zero again by early 2026.
SNB Rate vs Neighbours — Impact on Swiss Financial Products
SNB + Swiss commercial banks
| Product | Rate (Jan 2026) | vs EU Equivalent | Impact |
|---|---|---|---|
| SNB Policy Rate | 0,25% | ECB: 2,75% | 2,50pp lower — reflects low Swiss inflation |
| Swiss mortgage (SARON-linked) | ~1,5-2,0% | Euribor-linked: ~3,5-4,5% | Swiss mortgage holders pay significantly less |
| Swiss savings accounts | 0,5-1,0% | EU savings: 2,5-3,5% | Very low — Swiss savers disadvantaged vs EU |
| 10yr Swiss government bond | ~0,5% | German 10yr Bund: ~2,5% | Flight-to-quality premium — CHF safe haven |
| Swiss fixed mortgage (5yr) | ~1,8-2,5% | EU fixed (5yr): ~3,5-4,5% | Cheapest mortgage market in developed world |
ⓘ Switzerland has developed Europe's cheapest mortgage market as a result of its near-zero rate environment. Swiss homeowners pay 1,5-2,5% mortgages while UK homeowners pay 4,5-5,0%. This is offset by Switzerland's very high property prices (Zurich, Geneva among world's most expensive).
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🔬 Methodology & Sources
Data Methodology
Data for SNB Interest Rates 2026 sourced from Eurostat, ECB Statistical Data Warehouse, national statistical offices, and IMF World Economic Outlook. All figures are latest available as of January 2026. Annual data refers to 2025 actuals or 2026 estimates where flagged. EU/eurozone aggregates are weighted averages.
Formula
Country figures sourced directly from official databases; EU/EZ aggregates are GDP-weighted or population-weighted means as appropriate.
CitationEurostat Statistics Explained; ECB Annual Report 2025; IMF World Economic Outlook October 2025.
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Sources & References
Data sourced from official institutional publications. Results are for informational purposes only. Last reviewed Jan 2026.
Data Disclaimer
Data sourced from official statistical agencies (Eurostat, national offices, ECB, IMF). Figures are latest available as of January 2026. Always verify with primary sources for official purposes.
Data sourced from official statistical agencies (Eurostat, national offices, ECB, IMF). Figures are latest available as of January 2026. Always verify with primary sources for official purposes.