Swiss National Bank President Martin Schlegel spoke on Saturday.
Schlegel signalled that Switzerland’s exceptionally low inflation is set to pick up modestly, even as overall price growth remains comfortably within the SNB’s definition of price stability.
Noted that inflation currently sits at the bottom of the bank’s 0%–2% target range but is likely to “rise slightly” over the coming quarters.
(While the CPI in Switzerland has hovered close to zero for much of the year, SNB projections show Bank officials expect inflation to average just 0.2% in 2025 before edging up to 0.5% in 2026 and 0.7% in 2027).
Schlegel reiterated that returning to negative rates, used from 2015 to 2022, would require an exceptionally high bar. Current policy, he said, is expansionary and supportive of both inflation and economic activity.
Schlegel also commented on the newly announced preliminary trade deal with the United States, which will significantly reduce tariffs on Swiss exports. But he warned that tariffs are only one contributor to the broader climate of uncertainty — a factor he called “poison for the economy.”
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A mild upward drift in Swiss inflation suggests the SNB will hold rates at zero for longer rather than re-enter negative territory, keeping downward pressure on CHF funding costs while limiting safe-haven appreciation.
