No change: SNB maintains zero interest rate policy

As expected by the market and Swiss Life’s economists, the Swiss National Bank (SNB) left the key interest rate at zero during its last monetary policy assessment on 18 June 2026. It is thus continuing its “zero interest rate policy”, in force since June 2025, although inflation has been lower than expected in recent months. However, the inflation rate forecast for the medium term remains within the target range, so the SNB considers its objective of stabilising price levels to have been achieved. 

The ongoing expansionary monetary policy supports the economy and encourages inflation, although Swiss gross domestic product (GDP) growth is expected to slow somewhat in the third quarter of 2026.

Regardless of whether the key interest rate is cut, raised or maintained at the same level, it affects not only the Swiss economy but also private individuals. The key interest rate is particularly relevant for mortgage holders, people with savings capital and those who invest their money. For each of these three categories, we have compiled the answers to the most important questions about the key interest rate here. 

Swiss Life currently expects that the SNB will leave the key interest rate unchanged at zero until at least the end of 2026 and then slowly start to raise it thereafter. 

During periods of low interest rates, savers lose out. If the SNB key interest rates are low or zero, short-term market interest rates will also be low. Banks can already borrow money cheaply and do not have to pay savers high interest rates on their savings accounts. If interest rates on savings capital are lower than the inflation rate, savers may even lose purchasing power. 

A person who invests their money instead of leaving it in a savings account can benefit in different ways from the persistently low key interest rates in Switzerland, depending on the asset class:

• Equity markets: low interest rates tend to boost equities as future earnings are valued more highly. In addition, equities often react positively to key interest rate cuts, as they lead to higher company valuations and low interest rates make financing more attractive for companies.
• Bonds: when zero interest rates prevail, new bonds tend to have low interest rates and high valuations. As a result, the regular yields on them are low. People who already own bonds can benefit from interest rate cuts as their existing bond investments gain in value.
• Real estate investments: the picture is also positive for real estate investments, as lower financing costs can increase the demand for real estate. We explain the specific situation for mortgage holders in the next section.
• Precious metals: investments in precious metals such as gold, silver or platinum can become more attractive when interest rates are low. They do not earn interest themselves, which means that the opportunity loss compared to fixed-income investments decreases when interest rates fall.

The extent to which the prolonged interest rate standstill will affect you depends on your situation in life and your financial decisions. The fact is, however, that traditional saving is becoming less and less worthwhile in light of these developments. The more key interest rates in Switzerland fall or remain at a low level, the more attractive it becomes to invest. 

Interest rates for fixed-rate mortgages are currently moving sideways at a low level. With Swiss Life, you can extend your expiring mortgage early up to 18 months prior to the end of the term. The interest surcharge for early extensions is still very low for many terms.

Whether you can benefit from key interest rate cuts or low interest rates depends primarily on the type of mortgage you have taken out:

• Fixed-rate mortgages: existing mortgages remain at the interest level at which you concluded them, unless you restructure your debt. If you take out a new fixed-rate mortgage, you can benefit as the banks can offer lower interest rates.
• SARON mortgage: key interest rate cuts are good news for people with SARON mortgages. After all, SARON mortgages are linked to short-term interest rates, which correlate closely with the SNB key interest rate. As a result, interest rates on these have also fallen gradually in recent months. However, many institutions do not offer negative SARON rates, limiting the potential for further interest rate cuts on SARON mortgages. If the SNB maintains zero interest rates over the medium to long term, interest rates for SARON mortgages should also move sideways. 

Swiss Life expects long-term mortgage interest rates to rise moderately in 2026. If this forecast proves correct, now could well be a good time to extend your mortgage.

Mortgage interest rates are currently bottoming out. Swiss Life expects them to increase moderately over the course of the year. So why not take out a fixed-rate mortgage and secure an attractive interest rate for the years to come? With a low-cost fixed-rate mortgage, you protect yourself against potential interest rate rises throughout the term and can plan your future with certainty without having to deal with potential interest rate adjustments.

However, the question of what is the most suitable type of mortgage also depends heavily on your risk appetite and financial resources: 

• If you value security, stability and predictability or only have limited financial leeway, a long-term fixed-rate mortgage is usually a good option.
• If you think that mortgage interest rates will continue to fall and you can easily withstand financial fluctuations, a shorter term and the addition of SARON mortgages may be worthwhile. A word of caution, however: many institutions do not offer negative SARON rates. Accordingly, the potential for further interest rate cuts for SARON mortgages is limited. 

It is always a good idea to get a personal consultation on the topic of mortgages. Swiss Life experts will walk you through every market situation and support you throughout the entire financing process, offering expert advice on residential property and mortgages – so that you can fulfil your dream of owning your own home in a financially self-determined manner.