The Swiss National Bank held the SNB policy rate at -0.75 percent during its September meeting, saying that the expansionary monetary policy continues to be necessary given the latest international developments and the inflation outlook. Policymakers agreed that the situation on the foreign exchange market is still fragile, while the Swiss franc remains highly valued. Interest Rate in Switzerland averaged 0.73 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 -0.75 percent in 2020, according to our econometric models.

Switzerland Interest Rate
width
height
Forecast Data Chart
Trading Economics members can view, download and compare data from nearly 200 countries, including more than 20 million economic indicators, exchange rates, government bond yields, stock indexes and commodity prices.

The Trading Economics Application Programming Interface (API) provides direct access to our data. It allows API clients to download millions of rows of historical data, to query our real-time economic calendar, subscribe to updates and receive quotes for currencies, commodities, stocks and bonds.


Calendar GMT Actual Previous Consensus TEForecast
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%
2019-06-13 07:30 AM SNB Interest Rate Decison -0.75% -0.75% -0.75% -0.75%
2019-09-19 07:30 AM SNB Interest Rate Decison -0.75% -0.75% -0.75% -0.75%
2019-11-14 05:30 PM SNB Maechler Speech
2019-12-12 08:30 AM SNB Interest Rate Decison -0.75%
2019-12-12 08:30 AM SNB Press Conference



SNB Holds Policy Rate at -0.75%

The Swiss National Bank held the SNB policy rate at -0.75 percent during its September meeting, saying that the expansionary monetary policy continues to be necessary given the latest international developments and the inflation outlook. Policymakers agreed that the situation on the foreign exchange market is still fragile, while the Swiss franc remains highly valued.

Excerpt from the Swiss National Bank's statement:

The SNB is adjusting the basis for calculating negative interest as follows. Negative interest will continue to be charged on the portion of banks’ sight deposits which exceeds a certain exemption threshold. However, this exemption threshold will now be updated monthly and thereby reflect developments in banks’ balance sheets over time.

This adjustment to the calculation basis takes account of the fact that the low interest rate environment around the world has recently become more entrenched and could persist for some time yet. The adjustment raises the exemption threshold for the banking system and reduces negative interest income for the SNB. The new exemption threshold calculation comes into effect on 1 November 2019.

The new conditional inflation forecast is lower than in June. This is primarily due to weaker growth and inflation prospects abroad and the stronger Swiss franc. The forecast for the current year has been reduced slightly to 0.4%, from 0.6% in the previous quarter. For 2020, the SNB now expects an inflation rate of 0.2%, compared to 0.7% last quarter. The inflation rate increases to 0.6% in 2021; in the previous quarter, a rise to 1.1% had been forecast. The conditional inflation forecast is based on the assumption that the SNB policy rate remains at –0.75% over the entire forecast horizon.

Global economic signals have deteriorated in recent months due to heightened trade tensions and political uncertainty. Economic growth around the world slowed in the second quarter, and manufacturing output has since been showing signs of weakening. The economic slowdown is being accompanied by subdued capital spending and a decline in the global trade in goods. Employment growth in the advanced economies was also slower than in previous quarters. In light of the heightened economic risks and modest inflation dynamics, various central banks have adjusted their monetary policy stance and lowered their key rates.

In its new baseline scenario for the global economy, the SNB is revising down its growth forecast for the coming quarters. Over the short term, international momentum is likely to be modest. However, in the medium term the SNB expects the global economy to pick up again, not least due to monetary policy easing measures. Inflation is then expected to rise again gradually.

Risks to the global economy remain tilted to the downside. Chief among them are still political uncertainty and trade tensions, which could lead to renewed turbulence on the financial markets and a further dampening of economic sentiment.

The Swiss economy continued to grow at a moderate rate in the second quarter. Developments on the labour market also remained positive. Employment figures continued to rise, and the unemployment rate remained stable at a low level.

The deterioration of the international economic environment will likely cause growth to weaken temporarily. The SNB expects growth of between 0.5% and 1% for 2019 as a whole, compared to around 1.5% in June. The forecast adjustment is largely attributable to the fact that GDP growth rates for the second half of 2018 and the first quarter of 2019 were revised downwards.


Swiss National Bank | Joana Ferreira | joana.ferreira@tradingeconomics.com
9/19/2019 7:47:52 AM



Switzerland Money Last Previous Highest Lowest Unit
Interest Rate -0.75 -0.75 3.50 -0.75 percent [+]
Interbank Rate -0.80 -0.80 10.00 -0.96 percent [+]
Money Supply M0 553007.00 556805.00 570920.00 5475.00 CHF Million [+]
Money Supply M1 681049.00 679134.00 682520.00 89321.00 CHF Million [+]
Money Supply M2 1028773.00 1026714.00 1030195.00 198227.00 CHF Million [+]
Money Supply M3 1077177.00 1076028.00 1079320.00 252820.00 CHF Million [+]
Foreign Exchange Reserves 767114.00 767910.00 771992.30 42137.60 CHF Million [+]
Banks Balance Sheet 2018682.99 2020979.75 2023736.83 595832.00 CHF Million [+]
Loans to Private Sector 1502537.00 1499436.00 1502537.00 348012.00 CHF Million [+]
Deposit Interest Rate -0.36 -0.33 9.75 -0.36 percent [+]
Private Debt to GDP 246.62 237.09 246.62 182.56 percent [+]
Central Bank Balance Sheet 841830.25 835055.75 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 September 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 83.21 Sep/19
Turkey 16.50 Sep/19
Mexico 8.00 Aug/19
Russia 7.00 Sep/19
South Africa 6.50 Sep/19
Brazil 5.50 Sep/19
India 5.40 Aug/19
Indonesia 5.25 Sep/19
China 4.20 Sep/19
Saudi Arabia 2.50 Sep/19
United States 2.00 Sep/19
Canada 1.75 Sep/19
Singapore 1.74 Aug/19
South Korea 1.50 Aug/19
Australia 1.00 Sep/19
United Kingdom 0.75 Sep/19
Euro Area 0.00 Sep/19
France 0.00 Sep/19
Germany 0.00 Sep/19
Italy 0.00 Sep/19
Netherlands 0.00 Sep/19
Spain 0.00 Sep/19
Japan -0.10 Sep/19
Switzerland -0.75 Sep/19


Related

Latest