Overview
- The Swiss National Bank left its main policy rate at 0% on June 18, 2026, and said it stands ready to intervene in foreign-exchange markets by selling francs if the currency rises too fast.
- The bank pointed to low inflation of about 0.6% and growth near 1% as the reasons it will avoid returning to broad negative-rate policy and instead keep a narrow -0.25% charge on large sight deposits as a complementary tool.
- Investors moved into safe assets after the Middle East conflict began on Feb. 28, which initially pushed the franc higher and is the key reason the SNB now emphasizes direct FX action to protect exporters and the wider economy.
- The SNB’s signal of active currency sales carries trade and political risks because major partners such as the United States have scrutinized Swiss currency moves in the past and could respond to visible intervention.
- A separate push to force the SNB to hold Bitcoin in its reserves failed to gain support and was dropped, underlining the central bank’s reluctance to add volatile crypto assets to its balance sheet.