Swiss National Bank Cuts Rates by 25 Basis Points to 1.25% for Second Time This Year

Jun 20, 2024, 08:29 AM

The Swiss National Bank (SNB) has cut its policy rate by 25 basis points to 1.25%, marking the second consecutive rate cut this year. This decision, which was unexpected by many economists, aims to counteract the strong Swiss franc and address easing inflationary pressures. The SNB noted that underlying inflation has decreased, revising its inflation projections lower from 1.1% to 1.0% in the longer term. This move solidifies the SNB's position as one of the most dovish central banks among the G10 nations. The rate cut follows a similar reduction in March, reflecting the central bank's proactive stance in the global policy easing cycle. The inflation rate had flatlined at 1.4% in May, and the franc had appreciated by 3% in trade-weighted terms this month.