Swiss National Bank Slashes Interest Rate Amid Global Economic Tensions

The Swiss National Bank reduced its policy interest rate by 25 basis points to 0.25% to combat low inflation and economic challenges from global trade policies. This decision aligns with recent central bank actions and aims to maintain price stability by influencing the Swiss franc's value.

The Swiss National Bank (SNB) has lowered its policy interest rate by 25 basis points to just above zero, setting the rate at 0.25%. This move, announced on Thursday, aims to counteract economic pressures from U.S. trade policies and align with expectations from economists surveyed by Reuters.

The SNB's decision was part of a broader pattern among central banks, with both the Bank of England and Sweden's central bank revealing their rate decisions on the same day. The U.S. Federal Reserve, meanwhile, held rates steady amidst ongoing uncertainties.

By adjusting rates, the SNB seeks to address low inflation, which fell to 0.3% in February, by bolstering economic conditions and stabilizing the Swiss franc, thus ensuring inflation remains within the target range of 0-2%.

(With inputs from agencies.)