Overview

• On June 19, the SNB slashed its policy rate by 25 basis points to zero percent, marking its sixth straight cut since March 2024.
• Swiss annual inflation turned negative in May at –0.1%, prompting the bank to cite falling price pressures and franc appreciation as key factors.
• The SNB trimmed its inflation forecasts for 2025 and 2026 to 0.2% and 0.5% and maintained a GDP growth outlook of 1%–1.5% for this year.
• Officials pledged continued readiness to intervene in foreign exchange markets and left open the option of moving into negative rate territory if deflationary trends persist.
• This decision aligns with policy shifts by the Fed, ECB and Bank of England as central banks recalibrate rates in response to trade uncertainty and weak inflation.