In its monetary policy assessment on 19 March 2026, the Swiss National Bank (SNB) decided to leave its policy rate unchanged at 0 percent. According to Philipp Merkt, Chief Investment Officer (CIO) at PostFinance, the SNB is sending a clear signal:
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SNB stands firm: policy rate remains at zero percent
19. March 2026
The fact that the SNB is leaving the policy rate unchanged despite the difficult economic environment highlights one key point: it is looking to avoid negative interest rates whenever possible.
Several factors are currently weighing on the Swiss economy. The export sector remains badly hit by US trade tariffs and weak demand from major trading partners such as Germany. This weakness is now also being reflected on the labour market and is increasingly threatening to spill over into the domestic economy. In addition to this, the Iran conflict is causing global uncertainty while the further appreciation of the Swiss franc against the euro is making Swiss exports more expensive. This type of scenario would usually suggest a rate cut.
However, the SNB appears to want to maintain zero interest rates and, if necessary, exert influence via foreign exchange market interventions. This would at least limit the appreciation of the franc, which is making Swiss goods on foreign markets more expensive. Merkt says that there are still risks associated with this strategy:
The SNB could be targeted by US policymakers if it makes large-scale foreign exchange interventions. This would be particularly unwelcome in the current geopolitical context.
For private customers, however, the decision means stability for the time being as far as savings and financing conditions are concerned.
Philipp Merkt
Chief Investment Officer