Swiss National Bank Interest Rate Decision

The Swiss National Bank (SNB) makes its interest rate decision only four times a year, and that small number turns every meeting into a heavyweight event for the Swiss franc. The Swiss National Bank is the country's central bank, and it manages the value of the franc and inflation through the interest rate and, when needed, by buying and selling currency in the market. At the top of this page you can see the current rate, the previous rate, the date of the last change and the next meeting, and the history chart since 2000 also shows Switzerland's long period of negative rates. This guide explains why the SNB decision differs from the decisions of other major central banks and how to read it.

What exactly does the Swiss National Bank set?

The SNB's main tool is the "policy rate", which replaced the bank's former target range in 2019. The bank defines price stability as follows: annual consumer price index growth of less than 2 percent, without falling into a sustained decline in prices. The second tool is foreign exchange intervention; the SNB has repeatedly said it will buy or sell francs if it deems it necessary. That is why, in each meeting's statement, the sentences about the currency market matter as much as the rate itself. To compare the Swiss rate with other central banks, see the central bank interest rates page.

Quarterly monetary policy assessment: four times a year

The SNB announces its interest rate decision at its quarterly assessment meetings in March, June, September and December. The decision is released at 9:30 a.m. Zurich time; that is, around 11:00 Tehran time when Europe is on summer time (usually the June and September meetings) and around 12:00 when it is on winter time (usually March and December). Along with the decision, the monetary policy assessment statement and the conditional inflation forecast for the coming years are also published; the bank's press conference, whenever it is held, has a separate row in the economic calendar. Because this release comes during the active hours of the European session, it has more liquidity than the early-morning decisions of the Asia-Pacific banks.

The Swiss franc: safe haven in the shadow of the euro

The franc is one of the market's safe havens: in times of crisis and fear, capital flows into it and the franc gets stronger. A strong franc lowers the price of imported goods and reduces Swiss inflation, so the SNB always keeps an eye on the franc's strength. The eurozone is Switzerland's largest trading partner, and the European Central Bank interest rate decision directly affects the rate gap between the two regions and, as a result, the franc. The reaction to the SNB decision is usually seen more cleanly in the EUR/CHF pair , because the USD/CHF pair is also sensitive to US news at the same time. The franc and gold (per ounce) are both considered safe assets and sometimes move in the same direction on tense days, but the SNB decision on its own is usually not the main driver of gold.

The lesson of January 2015: a surprise outside a meeting

For several years the SNB had defended a floor of 1.20 francs per euro through market intervention. In January 2015, outside its scheduled meetings, it suddenly removed this floor and at the same time pushed the interest rate further into negative territory. The franc surged within minutes, many stop losses were executed with large slippage and some traders' accounts went negative. Read the details of this event in the article the Swiss franc crisis of 2015 .

The main lesson: a central bank can also make decisions outside the calendar. If you trade the franc with high leverage, factor in the risk of unexpected news as well.

Switzerland's interest rate stayed negative from then until 2022, a period clearly visible in the history chart at the top of the page.

How to read the SNB decision

1. Compare the decision with the market forecast; because meetings are few, any unexpected change carries the weight of a full quarter of expectations.
2. Compare the conditional inflation forecast with the previous report; a lower forecast usually means more room for a rate cut.
3. Pay attention to the sentences about the currency market; greater readiness to intervene usually means the bank considers the franc too strong.
4. Keep leverage low. Before trading the franc on decision day, review the articles leveraged trading and 10 risk management standards in trading .

This page is for information only and is not a recommendation to buy or sell.