Switzerland’s remarkably low inflation over the past two decades cannot be primarily attributed to its high share of regulated prices, new research reveals. While administered prices did have a modest dampening effect, they were not the main driver of Switzerland’s inflation performance. The study shows non-administered prices played the dominant role in determining Swiss inflation dynamics and the country’s persistent inflation gap with the euro area.
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Swiss Public Finances 2029: Mixed FFA Forecast
Switzerland’s Federal Finance Administration projects divergent fiscal paths through 2029, with tight federal finances contrasting with cantonal surpluses. Municipalities face structural deficits while social security funding remains uncertain. The implementation of relief package 27 and AHV pension financing present key challenges that will shape the nation’s economic landscape for years to come.
read moreSwiss Watch Exports Fall 3.1% Amid US Tariff Impact
Swiss watch exports declined in September as new US tariffs took their toll on the luxury timepiece market. The 39% tariff imposed by the Trump administration contributed to a 55% plunge in exports to the United States. Despite growth in other markets, the US downturn dragged overall exports down by 3.1% to 2 billion Swiss francs ($2.5 billion), according to data from the Federation of the Swiss Watch Industry.
read moreSwitzerland Revises GDP Data, Shows Modest Q2 2025 Growth
Swiss economic authorities have completed a comprehensive benchmark revision of GDP data in line with international standards, revealing modest growth in the second quarter of 2025 following stronger performance earlier in the year. The State Secretariat for Economic Affairs (SECO) and Federal Statistical Office (FSO) implementation maintains the overall economic interpretation while providing enhanced sector-level visibility, particularly in manufacturing and transport sectors.
read moreSNB Holds Policy Rate at 0%, Maintains FX Readiness
The Swiss National Bank has maintained its ultra-accommodative monetary policy stance, leaving the SNB policy rate unchanged at 0% while reaffirming its readiness to intervene in foreign exchange markets. The decision reflects the central bank’s assessment that inflationary pressures remain virtually unchanged from the previous quarter, with current policy settings deemed sufficient to support both price stability and economic development in Switzerland.
read moreSNB’s Schlegel: US Tariffs Have Limited Swiss Impact
Swiss National Bank President Martin Schlegel downplayed the broader economic impact of US trade tariffs on Switzerland, noting that many firms remain unaffected despite challenges for some sectors. Speaking after the SNB held its benchmark interest rate at zero, Schlegel also addressed the central bank’s communication strategy and the franc’s valuation. The remarks came during an interview in Zurich with Bloomberg.
read moreAsian Shares Pause Rally as Yen Slumps, Fed Rate Path Unclear
Asian shares took a breather from their recent rally on Thursday as investors positioned for month- and quarter-end flows, while the Japanese yen tested fresh lows against the euro and a surging Swiss franc. The pause in momentum comes amid mixed signals from Federal Reserve officials, with San Francisco Fed President Mary Daly stating further rate cuts will likely be needed despite unclear timing, while Fed Chair Jerome Powell maintained a cautious stance following last week’s initial easing.
read moreSwiss-India Bridge: RootBridge Fund Taps Growth via Trade Deal
As India accelerates toward becoming the world’s third-largest economy, Zurich-based investors Ajay P. Singh and Nayan Srivastava are launching the RootBridge fund to connect Swiss capital with Indian growth. The newly effective Switzerland-India free trade agreement adds momentum, even without direct investment provisions. Their Diversified India Growth Fund targets private and public companies, blending Indian entrepreneurial culture with Swiss financial discipline.
read moreSNB Enhances Monetary Policy Transparency with New Summary
The Swiss National Bank emphasizes the importance of clear communication with government, parliament, and the public to support its price stability mandate. Over time, the SNB has adapted its outreach, including doubling the frequency of monetary policy press conferences and launching new publications. The latest development is a forthcoming summary of monetary policy discussions, covering the two-day assessment period. This summary will outline key points from the Governing Board’s deliberations, aiming to foster a better understanding of how the SNB’s strategy is applied to current economic conditions. The initiative reflects the bank’s ongoing commitment to evolving and improving its communication practices.
read moreTrump’s Swiss Tariffs: Muted Market Reaction Explained
Donald Trump’s imposition of 39% export tariffs on Switzerland has not triggered significant market turbulence, according to Wolf von Rotberg of J Safra Sarasin. He attributes this muted reaction to several factors: potential changes in deal terms, a possible depreciation of the Swiss franc that could boost export competitiveness, and the exclusion of key Swiss exports like gold and pharmaceuticals from the tariffs. Von Rotberg shared these insights during an interview with Francine Lacqua on Bloomberg: The Pulse, highlighting the nuanced dynamics at play in the trade policy’s early stages.
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