SNB Remains on Course

The SNB is not signaling any interest rate hikes for the time being. Markets are currently pricing in the next rate hikes only for 2027. The low-interest-rate environment and persistently low inflation continue to support the Swiss economy and financial markets. The Swiss stock market has corrected slightly since its high in early August. This has created attractive entry opportunities in high-quality Swiss value and dividend stocks. At the same time, geopolitical risks and developments in energy prices remain the most significant sources of uncertainty.

As expected, the SNB left its key interest rate at 0% and continues to view its current monetary policy as appropriate. Although inflation has recently risen from 0.6% to 0.8%, this is mainly due to higher energy prices. Underlying inflationary pressures remain moderate, and inflation is expected to remain within the price stability range in the coming years as well.

The Swiss economy continues to be in good shape. Although strong GDP growth in the second quarter was partly driven by the pharmaceutical industry, the economy remains on a solid footing overall. Low interest rates, a slightly weaker Swiss franc, and positive momentum from abroad are supporting economic development. Accordingly, SECO has raised its growth forecast for 2026 to 1.7%. The latest positive KOF Economic Barometer also points to continued favorable development in the third quarter. This is driven in particular by robust investment activity in the construction and equipment sectors, as well as by continued solid private consumption.

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SECO Economic Forecasts

GDP 2026: 1.70%
‍Inflation 2026: 0.60%
Key interest rates: 0.00%

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Dino Marcesini, Partner

_{Sources: Chefinvest, ZKB, SECO
As of: September 29, 2026}