Swiss National Bank (SNB) Chairman Martin Schlegel addressed the press following the June monetary policy assessment, during which the central bank kept its policy rate at 0%.
Key statements
Swiss inflation has risen in recent months due to higher energy prices, but medium‑term inflationary pressure remains unchanged.
We are prepared to intervene more aggressively in the foreign‑exchange market if necessary.
Swiss inflation has increased less than in many other economies and remains within the SNB’s target range.
Our monetary policy continues to exert an expansionary effect.
Inflation is expected to rise slightly in the next few quarters before declining in the first half of 2027.
Geopolitical uncertainties persist, and the risk of strong upward pressure on the franc remains.
More updates to follow.
Swiss Franc FAQs
The Swiss franc (CHF) is Switzerland’s official currency and ranks among the top ten most‑traded currencies worldwide, with volumes that far exceed the size of the Swiss economy. Its value is driven by market sentiment, the country’s economic health, actions by the SNB, and other factors. Between 2011 and 2015 the franc was pegged to the euro; the peg’s removal triggered a more than 20% appreciation and market turbulence. Although the peg no longer exists, the franc remains closely linked to the euro because of Switzerland’s strong economic ties to the Eurozone.
The franc is considered a safe‑haven currency, attracting investors during periods of market stress. Switzerland’s reputation for political neutrality, a stable economy, robust export sector, and sizable central‑bank reserves make the CHF a preferred asset when risk aversion rises, often boosting its value against riskier currencies.
The SNB meets quarterly—fewer times than many major central banks—to set monetary policy. It aims for an inflation rate below 2% per year. If inflation exceeds this target or is projected to do so, the SNB may raise rates to curb price growth. Higher rates tend to support the franc by increasing yields and attracting investment, while lower rates can weaken it.
Swiss macroeconomic data are key indicators for the franc’s valuation. The economy is generally stable, but abrupt changes in growth, inflation, the current account, or the SNB’s foreign‑exchange reserves can move the CHF. Strong growth, low unemployment, and high confidence typically strengthen the franc, whereas weakening data can lead to depreciation.
As a small, open economy, Switzerland depends heavily on the economic health of its neighboring Eurozone. The EU is Switzerland’s main trading partner and political ally, making stability in European monetary policy vital for the Swiss economy and, consequently, the franc. Some models suggest a correlation of over 90% between the euro and the franc.
