The Swiss National Bank reduced its key interest rate by 25 basis points to 0% per annum at the end of its meeting. Its action was aligned with the consensus forecast estimate, aggregated by Trading Economics.
The central bank reduced the rate for the sixth consecutive time, to a record low since 2022, as the country’s inflation moderated. Consumer prices in Switzerland dropped by 0.1% from year earlier in May. The SNB’s updated forecast of the nation’s average inflation rate is 0.2% in 2025, 0.5% in 2026 and 0.7% in 2027. It made this assumption that interest rate remains at zero.
The Central Bank also expects Swiss GDP growth slowing to 1-1.5% in this year and the following year. The economy grew 0.5% quarter-on-quarter and 2% compared with the same period in 2024 during the first quarter of 2025. The regulator noted the deteriorating global economic outlook amid heightened global trade tensions.
The SNB holds monetary policy meetings on a quarterly basis, the next being on 25 September.
