SNB Keeps Policy Rate at 0% Amid Rising Inflation

The Swiss National Bank (SNB) kept its policy rate at 0%, as forecast by economists and markets. The decision was made to resist rising inflation caused by the war in the Middle East, which has seen other central banks hike borrowing costs.

In a statement, the SNB said that medium-term inflationary pressure had increased only slightly, and that monetary policy is appropriate to keep inflation within its target range of 0%-2%. The bank also stated that it is willing to be active in the foreign exchange market as necessary to ensure appropriate monetary conditions.

The Swiss franc weakened slightly after the decision, trading roughly flat against the euro at 0.9395 francs and at 0.8247 francs against the US dollar. The SNB has kept its policy rate at 0% since June 2025, despite inflation accelerating to 0.8% in August due to surging fuel prices.