Switzerland’s Likely Rate Cut to Zero Threatens to Test Banks
From Yahoo Finance: 2025-06-14 02:00:00
The Swiss National Bank may introduce its first-ever zero interest rate, causing concern for banks already facing a lean year. The move aims to boost consumer prices weakened by a strong currency. While a cut to zero is expected, the impact on banks could be long-lasting, affecting deposits and loan margins. Economists predict a 25 basis-point reduction on June 19, but larger cuts are not ruled out. The central bank’s tough trade-offs reflect a commitment to price stability over industry favors, with banks expected to adapt to the zero rate environment.
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