3 MIN · A 3-minute read · Updated 30 October 2026
THE 10-SECOND VERSION
The SNB's policy rate is the anchor for short-term Swiss interest rates, and at 0% it keeps savings rates low and SARON mortgages cheap.
WHAT'S HAPPENING
The Swiss National Bank sets one key number: the SNB policy rate. On 24 September 2026 it left it unchanged at 0%, where it has stood since 20 June 2025.
How does one rate move a whole economy? Banks hold reserves, called sight deposits, at the SNB. Up to a threshold these earn the policy rate, 0%. Above the threshold they earn -0.25%. That steers the overnight rate banks charge each other, measured by SARON, which was -0.05% at the 29 October fixing. SARON is then the base for SARON mortgages, many business loans and, indirectly, the rate on your savings account.
Why zero? The SNB aims for inflation between 0% and 2%. Swiss inflation was 1.0% in September, driven mostly by oil products. The SNB's own conditional forecast, which assumes rates stay at 0%, puts average inflation at 0.7% for 2026 and 0.8% for 2027 and 2028, inside the target range throughout. The SNB said there are "still no signs of second-round effects" (summary).
Rates do not just move up. In the low-inflation 2010s the SNB held its rate below zero for years. Today the debate runs the other way: with central banks abroad raising rates and the franc softer, some analysts expect a Swiss hike within a year. That is a forecast, not an SNB signal. The SNB decides four times a year, in March, June, September and December.
THE NUMBER
0%
SNB policy rate, unchanged on 24 September 2026. Zero is not the floor. Switzerland lived with a negative policy rate for years in the 2010s. What matters for you is the gap between this rate and inflation: at 0% with prices up 1.0%, the real interest rate on cash is negative.
WHAT IT MEANS FOR YOUR FRANCS
Savings: with the policy rate at 0% and SARON slightly negative, ordinary savings accounts pay very little. With inflation at 1.0%, cash in a typical account loses purchasing power in real terms.
SARON mortgages: they follow the policy rate plus a bank margin, so a hike would feed through quickly. Fixed mortgages price in expected future rates instead.
The franc: a lower Swiss rate relative to abroad tends to weaken the franc; a hike would tend to strengthen it.
3 TERMS IN 30 SECONDS
Sight deposits: Money commercial banks keep in their accounts at the SNB. Its interest rate steers short-term rates in the economy.
SARON: Swiss Average Rate Overnight: the rate at which banks lend to each other overnight against collateral. Calculated by SIX.
Conditional forecast: The SNB's inflation forecast assuming its policy rate stays unchanged. It is a tool for decisions, not a promise.
WHAT TO WATCH NEXT
The December monetary policy assessment and any change in tone.
Monthly CPI from the FSO: October data is due in early November.
SARON on the SNB's rates page.
ECB and Fed decisions, which widen or narrow the rate gap.
THE 3-MINUTE TAKEAWAY
Think of the policy rate as the thermostat of the Swiss economy. At 0% it is set to 'neutral-to-warm': cheap borrowing, little reward for saving. The SNB will turn it up only if inflation threatens to leave its 0–2% range for good, and down if the franc or a slump pushes prices towards zero. Every decision comes with a forecast, so the reasoning is public.
GO DEEPER
More explainers like this: The 3-Minute Franc. Everything you need to know about your francs, 3 minutes each.
General information only, not investment, tax or legal advice, and not a recommendation to buy or sell any financial instrument. Figures come from the sources linked above and are preliminary. Independent; not affiliated with any exchange or authority.
Allgemeine Information, keine Anlageberatung. · Information générale, pas un conseil en placement. · Informazione generale, non consulenza in investimenti.