Decline in the SNB policy rate and Swiss inflation

The Swiss National Bank (SNB) will reduce its key interest rate by 0.25 percentage points to 1.0%, effective from 27 September 2024. Banks’ demand deposits held with the SNB will be charged at the key interest rate up to a certain limit and at 0.5% above this limit. The SNB remains ready to intervene actively in the foreign exchange market if necessary. Inflationary pressures have eased significantly compared with the previous quarter, partly explained by the appreciation of the Swiss franc over the past three months.v