Swiss National Bank cuts interest rate to zero as inflation slows
Switzerland's central bank has cut its interest rate to zero, a move that reflects a steady easing of inflationary pressure in the country.
The Swiss National Bank said in a statement on Thursday that its policy rate will be lowered from 0.25 percent after inflation dipped to minus 0.1 percent in May.
It's the bank's sixth consecutive cut since March 2024. The rate is now at the lowest since September 2022, when the bank ended a negative rate policy.
The central bank added in the statement that the outlook for the global economy faces high uncertainty. It said developments abroad represent the main risk for the Swiss economy.
The additional import tariffs imposed by the US this year triggered selling of the dollar and buying of Swiss francs as a safe haven asset. This has further lowered the cost of Switzerland's imports.
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Swiss National Bank cuts interest rate to zero as inflation slows
Switzerland's central bank has cut its interest rate to zero, a move that reflects a steady easing of inflationary pressure in the country. The Swiss National Bank said in a statement on Thursday that its policy rate will be lowered from 0.25 percent after inflation dipped to minus 0.1 percent in May. It's the bank's sixth consecutive cut since March 2024. The rate is now at the lowest since September 2022, when the bank ended a negative rate policy. The central bank added in the statement that the outlook for the global economy faces high uncertainty. It said developments abroad represent the main risk for the Swiss economy. The additional import tariffs imposed by the US this year triggered selling of the dollar and buying of Swiss francs as a safe haven asset. This has further lowered the cost of Switzerland's imports.
