The Swiss National Bank held its benchmark interest rate at -0.75 percent on December 13th, as widely expected, saying the franc is still highly valued and the situation on the foreign exchange market continues to be fragile while GDP growth is likely to weaken somewhat in 2019 amid global political uncertainties and protectionist tendencies. Interest Rate in Switzerland averaged 0.78 percent from 2000 until 2018, 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
Forecast Data Chart
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Calendar GMT Actual Previous Consensus TEForecast
2018-03-15 08:30 AM SNB Interest Rate Decison -0.75% -0.75% -0.75% -0.75%
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 06:25 AM SNB Annual Report
2019-03-21 08:30 AM SNB Interest Rate Decison -0.75% -0.75% -0.75%
2019-03-28 05:00 PM SNB Maechler Speech

Switzerland Holds Policy Rate at -0.75%

The Swiss National Bank held its benchmark interest rate at -0.75 percent on December 13th, as widely expected, saying the franc is still highly valued and the situation on the foreign exchange market continues to be fragile while GDP growth is likely to weaken somewhat in 2019 amid global political uncertainties and protectionist tendencies.

Excerpt from the Swiss National Bank statement:

The Swiss National Bank (SNB) is maintaining its expansionary monetary policy, thereby stabilising price developments and supporting economic activity. Interest on sight deposits at the SNB remains at –0.75% and 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 September 2018, the Swiss franc has depreciated slightly on a trade-weighted basis. This development is primarily due to the strengthening of the US dollar. The franc is virtually unchanged against the euro. Overall, the Swiss franc 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 remain essential. These measures keep the attractiveness of Swiss franc investments low and reduce upward pressure on the currency.

The new conditional inflation forecast for the coming quarters is lower than it was in September. This is mainly due to the drop in oil prices. The medium-term inflation forecast is also slightly lower owing to more moderate growth prospects. For the current year, the SNB continues to anticipate inflation of 0.9%. The forecast for 2019 has been revised down from 0.8% to 0.5%. For 2020, the SNB expects inflation of 1.0%, compared with its previous forecast 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.

In Switzerland, GDP fell by an annualised rate of 0.9%. Despite this decline, GDP was still 2.4% higher year-on-year thanks to the strong expansion in the previous quarters. A slowdown in GDP momentum was to be expected after several very strong quarters. Furthermore, the decline in GDP is also attributable to temporary factors. An analysis of all the available economic indicators points to momentum weakening slightly but remaining positive. The favourable development on the labour market also continued. Employment increased strongly in the third quarter. The unemployment rate declined again through to November to stand at 2.4%.

The SNB now anticipates slightly lower GDP growth of around 2.5% for 2018 as a whole. As in other countries, economic momentum in Switzerland is likely to weaken somewhat in 2019. The SNB expects a rise of around 1.5% in GDP for the coming year.

Risks are to the downside, as is the case with the global economy. In particular, a sharp slowdown internationally would quickly spread to Switzerland.

SNB | Joana Ferreira |
12/13/2018 9:02:13 AM

Switzerland Money Last Previous Highest Lowest Unit
Interest Rate -0.75 -0.75 3.50 -0.75 percent [+]
Interbank Rate -0.71 -0.70 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 63.71 Mar/19
Turkey 24.00 Mar/19
Mexico 8.25 Feb/19
Russia 7.75 Feb/19
South Africa 6.75 Feb/19
Brazil 6.50 Feb/19
India 6.25 Feb/19
Indonesia 6.00 Feb/19
China 4.35 Feb/19
Saudi Arabia 3.00 Feb/19
United States 2.50 Feb/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 Feb/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 Feb/19