Swiss National Bank lowers key interest rate to zero

The move was in response to falling inflation, pressure on the Swiss franc and economic uncertainty with the US. Keystone-SDA / Peter Schneider

The Swiss National Bank (SNB) has taken the next interest rate step, lowering the key interest rate by a further 25 basis points. It now stands at 0%.

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The move is justified by low inflation. According to Thursday’s press release, inflationary pressure has decreased compared to the previous quarter.

The SNB will now continue to monitor the situation closely and adjust its monetary policy if necessary. The aim is to ensure that inflation remains within the price stability range in the medium term. If necessary, the SNB is also prepared to remain active on the foreign exchange market.

The current decision comes as no surprise. Most economists had expected it in advance.

This is the sixth interest rate cut in a row. In March, June and September 2024, the SNB cut the key interest rate by 25 basis points each time, last December by 50 basis points and then again last March by 25 basis points.

The central bank had previously raised the key interest rate from -0.75% in June 2022 to 1.75% in just five steps. The reason for this was the sharp rise in inflation, which has since fallen again significantly and recently even slipped into negative territory.

Translated from German by DeepL/jdp

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