Switzerland Interest Rate

The benchmark interest rate in Switzerland was last recorded at 0 percent. Interest Rate in Switzerland is reported by the Swiss National Bank (SNB). Historically, from 2000 until 2012, Switzerland Interest Rate averaged 1.3 Percent reaching an all time high of 3.5 Percent in June of 2000 and a record low of 0.0 Percent in August of 2011. In Switzerland, interest rates decisions are taken by the Swiss National Bank. The official interest rate is the three-month Swiss franc Libor. The SNB regulates the three-month Libor indirectly through its main financing and liquidity-absorbing operations, which comprise short-term repo transactions. This page includes a chart with historical data for Switzerland Interest Rate.

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Switzerland Interest Rate
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Switzerland Benchmark Interest Rate Unchanged in March
SNB | Nuno Fontes | nuno@tradingeconomics.com  |  3/14/2013 9:23:12 AM


The Swiss National Bank is leaving the target range for the three-month Libor unchanged at 0.0–0.25 percent. In addition, the SNB is leaving the minimum exchange rate of CHF 1.20 per euro unchanged.

Excerpt from the Swiss Bank Monetary Policy Committee statement:

An appreciation of the Swiss franc would compromise price stability and would have serious consequences for the Swiss economy. The minimum exchange rate is an important instrument in avoiding an undesirable tightening of monetary conditions. The SNB will therefore enforce this minimum rate with the utmost determination and, if necessary, is prepared to buy foreign currency in unlimited quantities for this purpose. 
 
The SNB’s conditional inflation forecast has been adjusted downwards appreciably over the entire forecast period compared to the previous quarter. In the fourth quarter of 2012, inflation was lower than expected due to the continued decline in import inflation. Furthermore, the economic outlook is once again somewhat subdued, especially for the euro area. The inflation forecast is based on an unchanged three-month Libor of 0.0 percent over the next three years. Under this assumption, the Swiss franc weakens over the forecast period. The SNB is expecting an inflation rate of –0.2 percent for 2013, 0.2 percent for 2014, and 0.7 percent for 2015.
 
Despite a considerable easing of tensions on the international financial markets, global economic growth was rather weak in the fourth quarter. In Switzerland, economic activity slowed as expected. The unemployment rate rose again slightly, despite a rise in employment. The SNB continues to anticipate growth of 1.0–1.5 percent for Switzerland in 2013.
 
Downside risks to the Swiss economy remain considerable. There is a risk that tensions in the euro area will increase again. In addition, uncertainty about future developments in the fiscal policies of numerous advanced economies is dampening consumer and investment confidence and poses risks to growth. The global economic situation and sentiment on the financial markets therefore remain vulnerable.
 

ARCHIVE
Swiss National Bank Keeps Monetary Policy Unchanged in December
The Swiss Central Bank announced in its monetary policy assessment, in December of 2012, the decision to leave borrowing costs at zero. The decision was justified with the uncertainty in the Euro Area. 2012-12-13

Swiss National Bank Cuts Rates
The Swiss National Bank cut its interest rate target band from 0.00–0.75% to 0.00– 0.25% on August 3, in a surprise move to stem the rapid rise of the Swiss franc. 2011-08-03

Swiss National Bank Keeps Monetary Policy Unchanged in Q3 of 2012
The Swiss Central Bank announced in its quarterly monetary policy assessment, in September of 2012, the decision to leave borrowing costs at zero due to the vulnerability of the global economy. 2012-12-11

Swiss National Bank Keeps Rates on Hold
The Swiss National Bank (SNB) decided on June 16 to leave the target range for the three-month Libor rate unchanged at 0.0–0.75%, and intends to keep the Libor within the lower part of the target range at around 0.25%. 2011-06-16

SNB Keeps Monetary Policy Unchanged
The Swiss central bank pledged to keep defending its franc cap and left borrowing costs at zero to protect the economy from “exceptionally high” risks as the euro area’s crisis intensifies 2012-06-14

Swiss National Bank Maintains its Expansionary Monetary Policy
The Swiss National Bank (SNB) decided on March 17 to leave the target range for the three-month Libor rate unchanged at 0.0–0.75%, and intends to keep the Libor within the lower part of the target range at around 0.25%. 2011-03-17

SNB Holds Franc Peg at 1.20 to the Euro
The Swiss National Bank kept the minimum floor unchanged at 1.20 Swiss francs against the euro, even as it warned of a highly uncertain international economic outlook, saying that a further escalation of the European sovereign debt crisis can't be ruled out. 2011-12-15

Swiss National Bank Maintains Its Expansionary Monetary Policy
The Swiss National Bank (SNB) is maintaining its expansionary monetary policy. It is leaving the target range for the three-month Libor unchanged at 0.00–0.75%, and intends to keep the Libor within the lower part of the target range at around 0.25%. 2010-12-17

SNB Reiterates Franc Stance
The Swiss National Bank will enforce the minimum exchange rate of CHF 1.20 per euro set on 6 September with the utmost determination. It is prepared to buy foreign currency in unlimited quantities. It continues to aim for a three-month Libor at zero and will maintain total sight deposits at the SNB at significantly above CHF 200 billion. 2011-09-15




Interest Rate | Notes

The interest rate shown on this page refers to the central bank benchmark interest rate. Usually, the central bank benchmark interest rate is the overnight rate at which central banks make loans to the commercial banks under their jurisdiction. Moving the benchmark interest rate, the central bank is able to make an impact on interest rates of commercial banks, inflation level of the country and national currency exchange rate. Reduction of interest rates should bring increase in business activity, a rise in inflation rate and weakening of national currency. In case of increase in interest rates the level of business activity is likely to drop, inflation declines and national currency strengthens.






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