Swiss National Bank cuts interest rates to zero due to global economic uncertainty

From Yahoo Finance: 2025-06-19 15:35:00

Swiss National Bank slashed interest rates to zero, diverging from other central banks like the U.S. Federal Reserve and Bank of England. The move was in response to declining inflation fears amid trade policy volatility. SNB anticipates global economic growth weakening and inflation rising in the U.S., but falling in Europe.

In the U.S., the Federal Reserve held interest rates steady, citing positive employment data and inflation still below target. Norway also cut interest rates this week, while experts predict Switzerland may implement negative rates later this year. SNB Chairman Martin Schlegel hinted at the possibility of rates dropping to -0.75%.

The global economic outlook is uncertain, with trade tensions increasing and inflationary pressures remaining low. SNB will continue to monitor the situation and adjust monetary policy if necessary to maintain price stability. Fed Chair Jerome Powell has resisted pressure to lower rates, emphasizing the importance of reaching the 2% inflation target.



Read more at Yahoo Finance: Forget chocolate! The world now envies Switzerland’s zero interest rates