Frankfurt - ECB President Christine Lagarde cautioned that a full-scale trade conflict with the United States could significantly harm the Eurozone economy and potentially trigger a surge in inflation. Lagarde advocated for increased trade integration as a solution, noting that ECB analysis suggests such integration could offset losses from unilateral tariffs.
In Switzerland, the Swiss National Bank (SNB) lowered its benchmark Sight Deposit Rate by 25 basis points to 0.25%, citing low inflationary pressure and heightened downside risks to inflation. The SNB indicated it would closely monitor the situation and adjust monetary policy as necessary. Following the announcement, the USD/CHF pair reversed an intraday dip, climbing above 0.8800, though gains may be capped by geopolitical risks and expectations of Federal Reserve rate cuts.