Swiss Central Bank Cuts Interest Rate to Zero Amid Easing Inflation
The Swiss National Bank (SNB) announced on Thursday a 0.25 percentage point cut to its key interest rate, bringing it down to zero. This marks the sixth consecutive rate reduction as the central bank continues its efforts to support the economy amid weakening inflationary pressures.
In its statement, the SNB noted: "Inflationary pressures have eased compared to the previous quarter. With today’s monetary policy easing, the Swiss National Bank is responding to the current low inflation environment."
The bank now forecasts annual inflation to stand at 0.2% in 2025, rising moderately to 0.5% in 2026 and 0.7% in 2027.
Despite strong economic growth recorded in the first quarter of the year, the SNB expects a slowdown in the coming months, with full-year GDP growth projected to range between 1% and 1.5%.
