SNB Analysis

The SNB has kept its policy rate at 0%, suggesting a softer stance toward the Swiss franc after previously warning about intervention. At the same time, trade tensions have eased for now with the extension of the U.S.-China trade truce. In Australia, the labor market is sending mixed signals: employment growth came in well above expectations, but the unemployment rate edged up, hinting at a more nuanced shift in the economy.
Swiss National Bank Policy
Monetary Policy and Interest Rates
Policy Rate: The SNB held its policy rate at 0% for the fifth consecutive meeting as forecast
Currency Impact: Following the announcement, the Swiss franc declined. Analysts attribute this weakness to the SNB’s relaxed stance on the currency’s value and the lack of any indication of a future rate hike.
Economic Forecasts (2026–2028)
The SNB provided updated projections for the Swiss economy, suggesting a modest upward trend in both inflation and economic output:

Metric
Period
Forecast
Inflation
2026
0.7%
Inflation
2027
0.8%
Inflation
2028
0.8%
GDP Growth
2026
1.5% to 2%

Since March, the SNB has indicated a high willingness to intervene in markets to combat a strong franc, particularly in response to the Middle East conflict. However, the latest meeting marked a pivot in rhetoric:
Softened Warnings: The bank replaced more aggressive signaling with a statement that it is “willing to be active in the foreign exchange market as necessary.”

International Trade: U.S.-China Relations
Significant diplomatic activity has resulted in a temporary stabilization of trade relations between the world’s two largest economies.

Truce Extension: The United States and China have agreed to extend their current trade truce by approximately two months.
Key Deadline: The new deadline for negotiations is set for January 10.

Australian Labor Market Performance (August 2026)
Data from August 2026 reveals a discrepancy between job creation and the overall unemployment rate in Australia.

Employment Change
The Australian economy saw a substantial surge in employment, far exceeding initial projections:
Actual Change: +39,500 jobs
Forecasted Change: +15,100 jobs
Previous Month: -15,800 jobs
Unemployment Rate
Despite the high number of jobs added to the economy, the unemployment rate did not decrease; instead, it rose slightly above both the previous figure and the forecast:
Actual Unemployment Rate: 4.6%
Forecasted Rate: 4.5%
Previous Month: 4.5%