Swiss National Bank Slashes Rates to Zero Amid Economic Uncertainty
The Swiss National Bank (SNB) has cut its interest rate to zero, tackling falling inflation and economic uncertainty. This decision, driven by pressure on the Swiss franc and external factors such as U.S. trade policies, marks the SNB's sixth successive rate reduction since March 2024. It hints at a return to negative rates.
The Swiss National Bank reduced its interest rate to zero on Thursday, responding to decreasing inflation and economic uncertainties linked to U.S. trade policies. This move marks the sixth consecutive rate cut since March 2024.
The central bank's decision aims to counter lower inflationary pressure and control the Swiss franc's strength. While it expects global economic growth to weaken, the SNB projects further decline in European inflationary pressure.
Amid a cautious global outlook, the SNB emphasized readiness to deploy negative interest rates or foreign exchange interventions if needed. Analysts warn of potential challenges from stronger Swiss franc impacts and rising U.S. tariffs.
(With inputs from agencies.)
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