In its monetary policy assessment on 11 December 2025, the Swiss National Bank (SNB) decided to leave its policy rate unchanged at 0 percent. It means the conditions for savings and financing transactions also remain largely unchanged.
Philipp Merkt, Chief Investment Officer (CIO) at PostFinance, sees the decision as fully understandable as there is no immediate incentive to ease rates:
The pressure to act is currently too low to justify a return to negative interest rates. Inflation is within the SNB’s target range, the Swiss franc is fairly valued and monetary policy is already having an expansive effect.
Core inflation, which excludes energy and food, currently stands at 0.4 percent. While the Swiss franc has gained in value somewhat this year, this effect is put into perspective by significantly higher inflation abroad. Nevertheless, Merkt does not rule out a further interest rate cut in the coming months.
Pressure on the SNB is likely to increase in the medium term. Economic performance remains fragile and there’s also a risk of inflation weakening even further.
The Swiss economy contracted by 0.5 percent in the third quarter of 2025 and there are no signs of a significant recovery for the time being. At the same time, inflationary pressure may weaken further over the next few months. The weak economy is holding back price developments, while base effects will soon have an impact on rental prices. Should these factors have a combined impact, the SNB may be forced to cut interest rates again.
Chief Investment Officer