Money in Switzerland

Switzerland - Money
SNB hikes rates in June in shock move
At its meeting on 16 June the Swiss National Bank (SNB) raised its policy rate and the interest rate on sight deposits from minus 0.75%—the world’s lowest—to minus 0.25%. The decision to raise rates took markets and our panelists by surprise.
As the Bank stated in its press release, the move was “aimed at preventing inflation from spreading more broadly to goods and services in Switzerland”. Inflation has been on an upward trend in recent months in light of more elevated international commodity prices and global supply constraints, and now sits at an over-decade high. The SNB revised up its own inflation forecasts markedly as a result, to 2.8% for 2022 and 1.9% for 2023. The strong domestic economy provided leeway for the hike, as did the Bank’s reduced concern over currency strength—in June’s press release there was no mention of the strength of the franc, in contrast to prior meetings.
Looking ahead, the SNB hinted at further hikes, saying: “It cannot be ruled out that further increases in the SNB policy rate will be necessary in the foreseeable future to stabilize inflation”.
Maxime Botteron, economist at Credit Suisse, commented:
“We revised our forecast for the policy rate and now expect the SNB to raise it by 0.5 percentage points in September to 0.25% and to 0.50% in December. We set our 12-month forecast at 0.50%.”
Analysts at ING were more dovish:
“Given the inflation forecasts and the economic environment, we believe that a further 25bp rate hike is to be expected this year, but we think it unlikely that the SNB will go further than that this year. In our view, once the policy rate moves to 0%, any further rate hikes would be for 2023. The SNB should therefore be less aggressive in its rate hikes than the ECB.”
Our panelists are currently revising their forecasts, with a new Consensus to be published on 26 June.
Switzerland - Money Data
2015 | 2016 | 2017 | 2018 | 2019 | |
---|---|---|---|---|---|
Money (annual variation in %) | 1.4 | 3.9 | 4.0 | 3.5 | 0.1 |
Switzerland Money Chart

Source: Swiss National Bank and FocusEconomics calculations.
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: Inflation rises in June to near two-decade high
July 4, 2022
Consumer prices increased 0.50% in June over the previous month, which was below the 0.65% rise logged in May.
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June 30, 2022
The KOF Economic Barometer came in at 96.9 in June, down from May's 97.7.
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June 30, 2022
Retail sales fell 1.6% year on-year in calendar-adjusted terms in May (April: -5.5% c.a.
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Switzerland: SNB hikes rates in June in shock move
June 16, 2022
At its meeting on 16 June the Swiss National Bank (SNB) raised its policy rate and the interest rate on sight deposits from minus 0.75%—the world’s lowest—to minus 0.25%.