The Swiss National Bank announced on Thursday that it has decided to lower its main policy rate by a quarter of a percentage point. This move comes in response to a decrease in underlying inflationary pressure, despite certain cost increases such as rents, tourism services, and oil products. The central bank's decision to reduce the interest rate to 1.25% from 1.5% will go into effect on Friday.
Earlier this spring, the Swiss National Bank made headlines by becoming the first major financial institution to cut interest rates. In March, it implemented a similar quarter-point reduction, surprising many market analysts. The bank highlighted that inflation in Switzerland is currently being primarily driven by higher prices for domestic services.
