Edition November 11, 2026

Transmission and conduct of monetary policy in Switzerland

Monetary conditions were tightened through policy-rate increases and foreign-currency sales, bringing inflation back within the price-stability range.

Price stability is defined as inflation between 0% and 2%, with the aim of keeping it in that range over the medium term rather than at a specific point. Changes in the policy rate affect short- and long-term rates, asset prices and the exchange rate, influencing consumption, investment, trade, aggregate demand and inflation. When inflation began rising in 2021, the SNB first reduced foreign-currency purchases and allowed the Swiss franc to appreciate.

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