The Swiss National Bank left its benchmark interest rate unchanged at -0.75 percent on March 21st 2019, in line with market expectations, saying the Swiss franc is still highly valued, and the situation on the foreign exchange market continues to be fragile. Policymakers also lowered inflation forecasts for 2019 to 0.3 percent from 0.5 percent and for 2020 to 0.6 percent from 1 percent. Interest Rate in Switzerland averaged 0.76 percent from 2000 until 2019, reaching an all time high of 3.50 percent in June of 2000 and a record low of -0.75 percent in January of 2015.

Interest Rate in Switzerland is expected to be -0.75 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Interest Rate in Switzerland to stand at -0.75 in 12 months time. In the long-term, the Switzerland Interest Rate is projected to trend around 0.25 percent in 2020, according to our econometric models.

Switzerland Interest Rate
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Calendar GMT Actual Previous Consensus TEForecast
2018-06-21 07:30 AM SNB Interest Rate Decison -0.75% -0.75% -0.75% -0.75%
2018-09-20 07:30 AM SNB Interest Rate Decison -0.75% -0.75% -0.75% -0.75%
2018-12-13 08:30 AM SNB Interest Rate Decison -0.75% -0.75% -0.75% -0.75%
2019-03-21 08:30 AM SNB Interest Rate Decison -0.75% -0.75% -0.75% -0.75%
2019-03-28 05:00 PM SNB Maechler Speech
2019-04-26 08:00 AM SNB Chair Jordan Speech
2019-04-26 08:00 AM SNB Studer Speech



Switzerland Keeps Rates Steady, Lowers Inflation Forecasts

The Swiss National Bank left its benchmark interest rate unchanged at -0.75 percent on March 21st 2019, in line with market expectations, saying the Swiss franc is still highly valued, and the situation on the foreign exchange market continues to be fragile. Policymakers also lowered inflation forecasts for 2019 to 0.3 percent from 0.5 percent and for 2020 to 0.6 percent from 1 percent.

Excerpt from the Swiss National Bank statement:

The target range for the three-month Libor is unchanged at between –1.25% and –0.25%. The SNB will remain active in the foreign exchange market as necessary, while taking the overall currency situation into consideration.

Since the monetary policy assessment of December 2018, the Swiss franc has depreciated slightly on a trade-weighted basis. Overall, however, it is still highly valued, and the situation on the foreign exchange market continues to be fragile. The negative interest rate and the SNB’s willingness to intervene in the foreign exchange market as necessary therefore remain essential. These measures keep the attractiveness of Swiss franc investments low and reduce upward pressure on the currency.

The new conditional inflation forecast is lower than in December. This is primarily attributable to weaker outlooks for growth and inflation abroad, and the resulting reduction in expectations regarding policy rates in the major currency areas going forward. The forecast for the current year has been reduced marginally to 0.3%, from 0.5% in the previous quarter.

For 2020, the SNB now expects inflation of 0.6%, compared to 1.0% last quarter. For 2021, it anticipates an inflation rate of 1.2%. The conditional inflation forecast is based on the assumption that the three-month Libor remains at –0.75% over the entire forecast horizon. Global economic activity has weakened more than expected in recent months. Growth was curbed in part by temporary factors. However, the underlying momentum in many advanced economies also slowed. Production in the manufacturing industry, in particular, was sluggish in a number of countries. 

Economic indicators are currently pointing to moderately positive momentum. After stagnating in the second half of 2018, GDP growth is thus likely to pick up again somewhat. For 2019 as a whole, the SNB continues to expect GDP to expand by around 1.5%. 

Imbalances persist on the mortgage and real estate markets. Both mortgage lending and prices for single-family homes and privately owned apartments continued to rise slightly in recent quarters, while prices in the residential investment property segment declined somewhat. Nevertheless, due to the strong price increases in recent years and growing vacancy rates there is the risk of a correction in this segment in particular. The SNB will continue to monitor developments on the mortgage and real estate markets closely, and will regularly reassess the need for an adjustment of the countercyclical capital buffer.


SNB | Joana Taborda | joana.taborda@tradingeconomics.com
3/21/2019 8:45:02 AM



Switzerland Money Last Previous Highest Lowest Unit
Interest Rate -0.75 -0.75 3.50 -0.75 percent [+]
Interbank Rate -0.71 -0.71 10.00 -0.96 percent [+]
Money Supply M0 570920.00 562276.00 570920.00 5475.00 CHF Million [+]
Money Supply M1 671291.00 670700.00 671291.00 89321.00 CHF Million [+]
Money Supply M2 1016904.00 1015537.00 1016904.00 198227.00 CHF Million [+]
Money Supply M3 1070682.00 1062575.00 1070682.00 252820.00 CHF Million [+]
Foreign Exchange Reserves 738751.00 742395.00 757192.70 42137.60 CHF Million [+]
Banks Balance Sheet 1986280.39 1997570.45 2023736.83 595832.00 CHF Million [+]
Loans to Private Sector 1453561.00 1450527.00 1453561.00 348012.00 CHF Million [+]
Deposit Interest Rate -0.31 -0.32 9.75 -0.34 percent [+]
Private Debt to GDP 246.62 237.09 246.62 182.56 percent [+]
Central Bank Balance Sheet 827948.89 817068.82 843306.37 68322.20 CHF Million [+]


Switzerland Interest Rate

The SNB implements its monetary policy by fixing a target range for the reference interest rate, the Libor (London Interbank Offered Rate) for three-month interbank loans in Swiss francs. The target range normally has a bandwidth of 100 basis points (one percentage point) and, as a rule, the SNB holds the Libor in the middle of the defined range. As interest rates increasingly approached zero in the wake of the financial crisis, the Libor target range was narrowed. 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 target range for the Libor 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. This page provides - Switzerland Interest Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news. Switzerland Interest Rate - actual data, historical chart and calendar of releases - was last updated on March of 2019.

Actual Previous Highest Lowest Dates Unit Frequency
-0.75 -0.75 3.50 -0.75 2000 - 2019 percent Daily




Country Last Previous
Argentina 65.76 Mar/19
Turkey 24.00 Mar/19
Mexico 8.25 Feb/19
Russia 7.75 Mar/19
South Africa 6.75 Feb/19
Brazil 6.50 Mar/19
India 6.25 Feb/19
Indonesia 6.00 Mar/19
China 4.35 Feb/19
Saudi Arabia 3.00 Feb/19
United States 2.50 Mar/19
Canada 1.75 Mar/19
South Korea 1.75 Feb/19
Singapore 1.66 Feb/19
Australia 1.50 Mar/19
United Kingdom 0.75 Mar/19
Euro Area 0.00 Mar/19
France 0.00 Mar/19
Germany 0.00 Mar/19
Italy 0.00 Mar/19
Netherlands 0.00 Mar/19
Spain 0.00 Mar/19
Japan -0.10 Mar/19
Switzerland -0.75 Mar/19


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