The SNB reaffirmed its accommodative stance in the summary of its September policy meeting, noting that inflation is expected to remain comfortably within the range consistent with price stability. The Governing Board discussed the outlook in detail with experts, concluding that “all available information points to inflation remaining within the range consistent with price stability” and that it is “not expected to become persistently negative.”
While price pressures remain subdued, policymakers highlighted a rising degree of external uncertainty, particularly stemming from U.S. trade policy. The SNB warned particularly that tariffs on pharmaceutical products — one of Switzerland’s key export sectors — could weigh on GDP in both the short and medium term. The extent of the drag, however, remains uncertain and will depend on how global supply chains and exchange rates evolve. Large currency swings were cited as a key risk factor for the inflation outlook.
The Governing Board noted that monetary policy remains “expansionary”, with the full effects of previous easing still filtering through the economy. Despite weak inflationary pressure and a modest deterioration in the growth outlook, policymakers believe the current stance is supporting a gradual rise in prices and providing essential backing for domestic activity.
Given this backdrop, the SNB concluded that “a further easing of monetary policy was not appropriate.” The conditional inflation forecast and the overall growth assessment justify holding rates steady, and the policy rate was left unchanged at 0%.
