What the Swiss National Bank does
The Swiss National Bank (SNB) is the central bank of Switzerland. It issues the Swiss franc (CHF) and runs monetary policy, which means managing interest rates and money conditions to steer inflation.
Its legal mandate is price stability, while taking account of how the Swiss economy is developing. The SNB defines price stability as positive consumer price inflation below a ceiling it publishes. It also publishes a conditional inflation forecast, which means a forecast that assumes the policy rate stays where it is.
For background on how central banks affect exchange rates in general, see Central banks and currencies.
- The central bank raises its policy rate, or signals that it will.
- Deposits and bonds in that currency start to pay more.
- Investors move money into the currency to earn the higher yield.
- The currency tends to strengthen; a rate cut usually works the other way.
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Who decides and when
Monetary policy decisions are made by the Governing Board, the SNB's executive body. The decision is not put to a public vote, and individual votes are not published. This sets the SNB apart from the Fed or the Bank of England.
The SNB announces decisions at scheduled monetary policy assessments spread across the year. The dates are published well in advance on the official SNB website, in its calendar of events. Use that calendar, or an economic calendar that takes its dates from it, rather than copying dates from forums. Our economic calendar guide explains how to read event times and impact levels.
The SNB can also act between scheduled assessments. It has done this before, so CHF pairs can move sharply on news that was not on any calendar.
The SNB policy rate and its tools
SNB policy rate
The SNB policy rate is the main signal of policy. The SNB aims to keep short-term secured Swiss franc money market rates close to it, with the SARON overnight rate as the reference. The current rate is published on the official SNB website, on its page for official interest rates. This page does not give a rate figure because rates change at each decision.
Sight deposits and tiering
Banks hold sight deposits, which are current-account balances, at the SNB. The interest paid on these balances is a key way of passing the policy rate on to the market. When the policy rate was negative, the SNB used a tiered system. Part of each bank's balance was exempt from the negative rate, which reduced the cost for banks.
Foreign exchange interventions
The SNB says openly that it is willing to buy or sell foreign currency when needed. It buys foreign currency to weaken the franc and sells it to strengthen the franc. This matters more for the SNB than for most central banks, because the exchange rate has a strong effect on Swiss import prices and inflation. More on this tool: Currency intervention.
Open market operations
The SNB also uses repo operations and SNB Bills, its own short-term debt securities, to add or drain liquidity in the franc money market.
How to read SNB statements
On decision day the SNB publishes a press release, its conditional inflation forecast and an introductory statement. A press conference follows. Some weeks later it publishes a written summary of the Governing Board's deliberations. Check the SNB website for the current publication schedule.
What traders read for:
- The rate decision compared with expectations. The market usually prices in the most likely outcome beforehand. The surprise, not the decision itself, drives the first move. See Economic surprises.
- The conditional inflation forecast. If the forecast shows inflation drifting outside the SNB's range at an unchanged rate, the market reads this as a hint about the next decision.
- Wording on the franc. Language about the franc being "highly valued", or about a willingness to intervene, matters as much as the rate. A stronger commitment to act in FX markets is often read as a sign the SNB wants to limit franc strength.
- Tone. Hawkish wording leans towards tighter policy and dovish wording towards easier policy. See Hawkish vs dovish and Forward guidance.
Because there are no published individual votes, the press conference Q&A is often the main source of nuance.
SNB and the franc: why CHF pairs react
The franc is widely treated as a safe-haven currency. In periods of market stress, money often flows into CHF, along with the yen and gold. See Safe-haven assets and Risk-on, risk-off.
This gives the SNB a constant issue. Demand for the franc during crises can push it higher than the SNB considers suitable for Swiss inflation and exporters. As a result, SNB policy is often about the exchange rate as much as the interest rate.
Pairs that usually react to SNB news:
| Pair | Why it reacts |
|---|---|
| EUR/CHF | The euro area is Switzerland's main trading partner, and the SNB watches this rate closely. It is also sensitive to ECB decisions. |
| USD/CHF | This pair combines SNB policy with Fed policy and global risk mood. |
| CHF/JPY | Both currencies are havens, so this pair reflects the policy gap between the SNB and the BoJ. |
| GBP/CHF | It reacts to SNB and Bank of England decisions. |
The general mechanism is the interest rate gap. When Swiss rates rise relative to other countries, holding francs becomes more attractive. When they fall, the opposite applies. See Interest rates and currencies and Real interest rates. Swiss CPI data between meetings shapes what the market expects.
Risk: gaps and sudden moves
The SNB once held a minimum exchange rate against the euro. It removed this floor without warning, and franc pairs moved so fast that many stop-loss orders were filled far from their set prices. Some leveraged accounts went below zero. This history is the reason many traders treat SNB days with extra caution.
Leveraged forex and CFD trading can lose money fast, and the risk is higher around central bank decisions. Spreads can widen, prices can gap, and margin can run out before you can act. Read Risk management before trading around any rate decision.
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Frequent questions
What is the SNB interest rate now?
Check the official SNB website, on its page for official interest rates. This page does not quote a figure because the rate can change at each assessment.
How often does the SNB meet?
The SNB holds scheduled monetary policy assessments spread across the year. The exact dates are in the SNB's official calendar. It can also act outside that schedule.
Does the SNB publish minutes?
It publishes a written summary of the Governing Board's deliberations some time after each assessment, but not individual votes. Check the SNB site for the current format.
Why does the franc rise in a crisis?
Investors see the franc as a safe haven, so demand for it often rises when markets are under stress.
Which pair moves most on SNB news?
EUR/CHF and USD/CHF usually react most directly. The size of the move depends on how far the decision differs from what the market expected.
Can the SNB change policy without warning?
Yes. It has done so before. This is one reason CHF pairs can gap and why risk control matters.