Interest Rate in Switzerland
Switzerland - Interest Rate
SNB maintains ultra-loose monetary policy in June
At its meeting on 23 September, the Swiss National Bank (SNB) left its policy rate and the interest rate on sight deposits at minus 0.75%—the world’s lowest. Moreover, the Bank reiterated its continued willingness to intervene in foreign exchange markets “as necessary” to temper the value of the franc.
The Bank’s move was aimed at shoring up economic activity in the face of the ongoing Covid-19 pandemic, avoiding unwanted appreciation of the Swiss franc, and boosting price pressures—while inflation in June–July has increased slightly, the SNB’s latest forecasts are still for inflation to average below 1.0% this year and next.
Looking ahead, the SNB is expected to maintain its extremely expansionary stance for a prolonged period in the face of depressed price pressures. Moreover, currency intervention is set to continue as and when required in order to tame any strengthening of the franc.
According to Peter Vanden Houte, economist at ING:
“We believe that nothing should be expected from the SNB until the European Central Bank starts to raise interest rates. Our house view is that this will not happen until the second half of 2023, at the earliest. Therefore, we do not expect any change in the SNB's monetary policy until the end of 2024. In the next few years between now and then, the global economic situation is likely to change significantly, but the SNB will probably always remain at the same point: watch what others do and wait to act.”
The next monetary policy meeting is scheduled for 16 December.
Our panelists forecast the Swiss National Bank policy rate to end 2021 at minus 0.75% and 2022 at minus 0.75%.
Switzerland - Interest Rate Data
| 2015 | 2016 | 2017 | 2018 | 2019 | |
|---|---|---|---|---|---|
| Policy Interest Rate (%) | -0.75 | -0.75 | -0.75 | -0.75 | -0.75 |
Switzerland Interest Rate Chart
Source: Swiss National Bank.
Switzerland Facts
| Value | Change | Date | |
|---|---|---|---|
| Bond Yield | -0.51 | 6.27 % | Jan 01 |
| Exchange Rate | 0.97 | -0.54 % | Jan 01 |
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Economic News
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Switzerland: Retail sales growth slows in October
December 2, 2021
Retail sales increased 1.2% year-on-year in calendar-adjusted terms in October (September: +2.6% c.a.
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Switzerland: Inflation comes in at highest level since November 2008 in November
December 1, 2021
Consumer prices increased 0.04% in November over the previous month, moderating from October's 0.30% increase.
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Switzerland: Manufacturing and Services PMIs moderate in November
December 1, 2021
The Credit Suisse/procure.ch Manufacturing Purchasing Managers' Index (PMI) fell to 62.5 in November from October's 65.4.
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Switzerland: KOF Economic Barometer records worst reading since February in November
November 30, 2021
The KOF Economic Barometer came in at 108.5 in November, down from October's 110.2.
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Switzerland: Economic growth eases in the third quarter
November 26, 2021
Economic growth ebbed slightly in the third quarter, with GDP increasing 1.7% on a seasonally-adjusted quarter-on-quarter basis (Q2: +1.8% s.a.
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