Swiss National Bank Cuts Rates Amid Global Economic Challenges

The Swiss National Bank has reduced its policy interest rate from 0.5% to 0.25%, amid concerns over the global economic impact of U.S. President Donald Trump's trade policies. This marks its fifth rate cut since March 2024. The move aligns with expectations, amidst other central banks' rate announcements.

The Swiss National Bank announced a significant monetary policy shift on Thursday, cutting its policy interest rate by 25 basis points. This adjustment places borrowing costs just above zero, a move influenced by potential effects from U.S. trade policies on inflation and the global economic landscape.

Lowering the policy rate from 0.5% to 0.25%, the SNB marks its fifth consecutive rate cut since March 2024. This decision aligns with what was expected by economists polled by Reuters, reflecting apprehensions concerning global trade.

The context is further compounded by the recent Federal Reserve stance, which maintained its rates steady, citing uncertainty from the newly announced policies of the Trump administration. Thursday also sees other key announcements from central banks including the Bank of England and Sweden's central bank.

(With inputs from agencies.)