The Swiss National Bank held its policy rate at 0% at its 24 September 2026 meeting and revised its foreign exchange intervention language from 'increased willingness' to 'willing to be active,' a formulation indicating reduced urgency around franc strength. The SNB also raised its inflation forecasts, marking a shift in the bank's assessment of domestic price pressures. The decision maintained the SNB's policy divergence from the US Federal Reserve, which has kept rates elevated.
The Swiss franc weakened following the decision. EURCHF rose to 0.9420 in the aftermath of the announcement, with USDCHF reaching levels last seen in May 2025.
The franc's depreciation was most directly expressed in the EURCHF and USDCHF currency pairs. EURCHF, which measures the euro against the Swiss franc, rose to 0.9420 as the softened intervention language reduced the perceived floor under the franc. USDCHF, the dollar-franc rate, reached May 2025 highs, reflecting the ongoing rate differential between Swiss and US monetary policy.
The SNB cited low inflation and franc strength as the rationale for maintaining its accommodative stance, while the revised intervention language represented a formal reduction in the bank's signalled readiness to intervene in currency markets. The bank's upward revision to inflation forecasts came alongside this softer intervention posture.
Sources: investinglive.com, Bloomberg Markets, Cnbc TOP