The Swiss National Bank (SNB) lowered its key interest rate by 0.25 percentage points to 0% on June 19, 2025. This move comes in response to easing inflationary pressures and the persistent strength of the Swiss franc.
Switzerland's annual inflation rate fell to -0.1% in May 2025, the first decline in four years. The strong Swiss franc has been a key factor in this deflationary trend, reducing import costs.
The SNB faces the challenge of balancing economic growth support with the prevention of deflation. The central bank has stated it will continue to monitor economic conditions and adjust its policy as needed to maintain price stability.