Overview

• The Swiss National Bank cut its policy rate by 25 basis points to zero in its sixth straight reduction since March 2024.
• Swiss annual inflation turned negative in May for the first time in four years, falling below the SNB’s 0-2% price-stability target.
• The move aims to counter waning inflationary pressure, support economic growth and mitigate appreciation of the Swiss franc.
• At zero, the SNB edges closer to resuming negative interest rates last employed from 2014 to 2022.
• Other major central banks including the ECB, Federal Reserve, Bank of England and Norges Bank have also signalled or enacted rate adjustments in response to global economic uncertainty.