Swiss National Bank Slashes Rates Amid Global Uncertainty

The Swiss National Bank cut its policy interest rate by 25 basis points, citing low inflation amid global economic uncertainties influenced by U.S. trade policies. The cut is aimed at maintaining monetary conditions and preventing further decline in inflation, with attention on potential geopolitical and trade shifts.

The Swiss National Bank (SNB) has lowered its policy interest rate by 25 basis points, aligning borrowing costs just above zero. This decision, announced on Thursday, reflects the bank's response to low inflation and global economic uncertainties, particularly those linked to U.S. trade policies under President Donald Trump.

Following the SNB's move, the Swiss franc experienced a slight weakening against both the euro and the dollar. Currently, the franc remains steady at 0.95705 against the euro and 0.8803 against the dollar, marking a 0.4% increase in the U.S. currency. The SNB's chief economist, Karsten Junius, noted that with this rate cut, the SNB appears to have completed its rate-lowering cycle.

The SNB's decision coincides with policy announcements from other central banks, such as the Bank of England and Sweden's central bank, reflecting a global focus on monetary conditions amidst economic uncertainties. The SNB emphasized the importance of keeping inflation within its target range, amid ongoing international economic fluctuations and potential trade or geopolitical shifts.

(With inputs from agencies.)