The Swiss National Bank (SNB) slashed its benchmark interest rate by 25 basis points to 0.25% on Thursday. The cut was in line with market expectations, amid ongoing economic uncertainty and low inflation. It also marks the first time the bank has lowered its rate since a surprise 50-basis-point cut in December last year.
Swiss inflation fell from 0.7% year-on-year in November 2024 to 0.3% in February this year, primarily because of dropping electricity prices. This was despite higher domestic services prices which somewhat offset the decrease.
