On the occasion of the annual discussion with the Federal Council on Wednesday, SNB Governing Board President Martin Schlegel and Bank Council President Barbara Janom Steiner discussed the economic situation, monetary policy and issues of financial stability, according to a statement from Wednesday.

Credit volume has continued to grow

According to the SNB, the Swiss credit market as a whole has proven robust. Domestic lending volume has grown continuously over the past ten years and also after the collapse of Credit Suisse. There are still no signs of a credit crunch.

The central bank also currently assesses the risks posed by financial intermediaries outside the banking sector, such as investment funds, as "limited." At the same time, it emphasizes their importance for the Swiss financial system.

Growth forecasts confirmed

For the Swiss economy, the SNB still expects growth of between 1.5 and 2 percent this year. For 2027, it continues to expect an increase of around 1.5 percent. This confirms its September forecasts. The economy is being supported by external momentum, monetary policy and the franc's depreciation since spring 2026.

Inflation has risen sharply

Inflation in Switzerland has increased from 0.6 percent in May to 1.5 percent in October since the escalation in the Middle East. The main reason is higher prices for petroleum products. Compared with other countries, however, inflation remains low and continues to be within the SNB's target range of zero to two percent.

The National Bank expects moderate growth in the global economy in the coming quarters. It cites a further rise in energy prices, the trade policy environment and exchange rate developments as major risks.

In September, the SNB left its key interest rate at zero percent. It also reiterated its willingness to intervene in the foreign exchange market if necessary in order to ensure appropriate monetary conditions.