Overview

• Chairman Martin Schlegel said negative rates carry undesirable side effects for savers and pension funds.
• He emphasized the central bank would act if required and rejected criticism that it cut too much earlier this year.
• The SNB lowered its policy rate to zero in June to address weak inflation after operating with subzero rates from 2014 to 2022.
• Swiss inflation has remained within the 0–2% target for three straight months, reinforcing expectations for no change.
• U.S. tariffs of 39% on Swiss imports are creating uncertainty that could curb investment and weigh on the economy.