SNB Lowers Key Interest Rate to 1.0%

The Swiss National Bank (SNB) lowered the key interest rate by 0.25 percentage points to 1.0% on September 26. This is the last action under the outgoing President Thomas Jordan. The decision reflects decreasing inflationary pressure in Switzerland. Additionally, it aims to weaken the strong Swiss franc to support the export-oriented economy.

The SNB indicates that further rate cuts may be necessary in the coming months if price stability remains at risk. At the same time, modest economic growth of about 1% this year and 1.5% for 2025 is expected. The weakening global economy and uncertainties abroad continue to be the main risks for the forecasts.

Jordan emphasized at his last press conference that it has been a privilege to have led the SNB since 2012. Martin Schlegel will take over as President of the SNB on October 1st.