The Swiss National Bank held its benchmark rate at zero earlier today. The decision was widely expected. The Swiss franc has fallen sharply today but that is more likely due to the surprising strong US GDP release, rather than the SNB rate cut.
The SNB statement noted that inflation had remained virtually the same in the second quarter and the inflation outlook called for little change. However, members expressed concern about the slowdown in global economic growth and the uncertainty over US tariffs.
The statement said that the Swiss economy had been affected by the US tariffs, dampening the export sector. In particular, the machinery and watchmaking industries had been hit, but the impact on the services sector had been limited.
Switzerland has been hit with massive tariffs of 39% on Swiss goods, and the statement warned that the economic outllook for the country remains "uncertain".
US GDP surprises on the upside
Third-estimate GDP climbed to 3.8% in the second quarter, a strong improvement from the 3.3% gain in the second estimate. This was above the consensus of 3.3%. The gain was driven by stronger consumer spending and a sharp decline in US imports.
The tariffs continue to create uncertainty and could dampen consumer spending as the price of imports rise. There are concerns that GDP will fall significantly in the second half of the year.
The Federal Reserve signaled at last week's meeting that it planned to cut rates twice more before the end of the year, but today's strong GDP data lowers the pressure on the Fed to ease policy. The markets have priced in an October rate cut at 88%, according to CME's FedWatch.
USD/CHF Technical
- USD/CHF has pushed above resistance at 0.7971 and 0.7990. Above, there is support at 0.8022
- 0.7939 and 0.7920 are providing support
USDCHF 1-Day Chart, September 25, 2025
