The interest rate cut decided today marks the sixth consecutive reduction amidst the country’s economic uncertainty, driven by global trade and geopolitical tensions. This decision comes shortly after authorities lowered Switzerland’s economic growth forecasts from 1.4% to 1.3% for this year.
Switzerland recorded a negative inflation rate of -0.10% in May compared to the same month in 2024, leading to increased calls for measures to boost consumption and stabilize the economy, such as the central bank’s interest rate cut.
Switzerland had negative interest rates from 2015 to 2022. After returning to positive rates, they peaked at 1.75% between June and December 2023 before starting to decline again.
The European Central Bank (ECB) lowered interest rates by 25 basis points at the beginning of June, bringing the main policy rate to 2%.
On Wednesday, the United States Federal Reserve decided to keep the interest rate in the range of 4.25% to 4.50%, despite opposing views from the U.S. President – who once again insulted the central bank president, Jerome Powell – while awaiting more information on the effects of the tariff increases implemented by the White House.
