Swiss Inflation to Pick Up in Coming Months, SNB’s Schlegel Says

(Bloomberg) — Consumer-price growth in Switzerland is expected to accelerate a bit, according to Swiss National Bank President Martin Schlegel.

“Inflation in our country is within the range of price stability — so between 0 and 2%. It is currently at the lower end of this range,” he said in Zurich on Saturday. “Inflation is likely to rise slightly in the coming quarters.”

Consumer-price growth has hovered around zero for most of this year, with the central bank expecting it to average at just 0.2% in 2025, before accelerating to 0.5% next year and 0.7% in 2027.

That’s led the SNB cut interest rates to zero as well, though Schlegel has repeatedly highlighted that a reduction back into negative territory — a policy conducted 2015-2022 — faces a high bar. Most economists surveyed by Bloomberg believe Swiss borrowing costs will stay on hold through 2027.

“Our monetary policy is currently expansionary, which means it supports inflation,” the SNB chief said. “And if necessary, we’ll adapt our policy, because price stability is our priority.”

Schlegel, who recently passed the one-year mark as Switzerland’s top central banker, said that SNB policy is also supporting the economy. The country has faced a tough year because of President Donald Trump’s tariff policy.

Still, the US and Switzerland announced last week that they reached a preliminary trade agreement to lower levies on many Swiss goods including watches from 39% to 15%.

Schlegel warned that tariffs are only one of the factors creating uncertainty.

“Uncertainty is poison for the economy,” he said.

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