Overview

• The Swiss National Bank lowered its policy rate by 25 basis points to zero percent while rejecting a return to negative territory to protect savers and pension funds.
• Norway’s central bank made an unexpected cut of 25 basis points to 4.25 percent as underlying inflation slowed to 2.8 percent in May.
• The SNB downgraded its inflation forecasts to 0.2 percent for 2025 and 0.5 percent for 2026 while maintaining its 1–1.5 percent growth outlook.
• Both institutions cited weakened global growth prospects alongside market volatility as drivers of their rate decisions.
• The US Treasury’s addition of Switzerland to its currency watchlist in early June factored into the SNB’s decision to stay at zero percent.