{"id":10956,"date":"2025-06-19T12:04:13","date_gmt":"2025-06-19T12:04:13","guid":{"rendered":"https:\/\/ipp-news.com\/?p=10956"},"modified":"2025-06-19T12:04:13","modified_gmt":"2025-06-19T12:04:13","slug":"swiss-national-bank-slashes-interest-rate-to-0-as-inflation-turns-negative","status":"publish","type":"post","link":"https:\/\/ipp-news.com\/?p=10956","title":{"rendered":"Swiss National Bank slashes interest rate to 0% as inflation turns negative"},"content":{"rendered":"<div>The Swiss National Bank (SNB) reduced its key interest rate to 0% on Thursday, citing a decline in inflation, pressure from a stronger Swiss franc, and uncertainty fuelled by US\u00a0trade policies.<\/p>\n<p>This marked the sixth consecutive rate cut since March 2024, bringing the benchmark down from 0.25%.<\/p>\n<p>The move comes after inflation in Switzerland turned negative in May for the first time in four years, falling outside the SNB&#8217;s 0\u20132% target range.<\/p>\n<p>Did you know?<br \/>\nSwitzerland just cut its interest rate to 0%. With inflation turning negative and the franc strengthening, the SNB is moving closer to negative territory again. Next meet in September again pic.twitter.com\/oNZ8Au9mt8<br \/>\n\u2014 Nikhil Oswal \ud83c\uddee\ud83c\uddf3 (@MrFinterest) June 19, 2025<\/p>\n<p>The SNB said its decision aims to \u201ccounter the lower inflationary pressure\u201d observed over the last quarter.<\/p>\n<p>The central bank also acknowledged it may resume negative interest rates \u2014 a policy last employed between 2014 and 2022 \u2014 if economic conditions worsen further.<\/p>\n<p>SNB Chairman Martin Schlegel noted that negative rates would not be adopted lightly due to their impact on banks, pension funds, and savers.<\/p>\n<p>He added that future policy decisions would depend on developments in the global economy, with the next review expected in September.<\/p>\n<p>Analysts said the move was driven by the franc\u2019s appreciation, which has gained roughly 11% against the U.S. dollar in 2025, lowering the cost of imports and thus inflation.<\/p>\n<p>Economists warned that continued currency strength could undermine exporters and weigh on growth.<\/p>\n<p>The SNB also flagged global economic risks, particularly from rising trade tensions following sweeping U.S. tariffs introduced by President Donald Trump earlier this year.<\/p>\n<p>While the SNB reiterated its readiness to intervene in foreign exchange markets if needed, it also remains wary of being labelled a currency manipulator.<\/p>\n<p>The rate cut places the SNB among several global central banks easing monetary policy amid weakening growth.<\/p>\n<p>Norway\u2019s central bank also made its first rate cut in five years on Thursday, while the European Central Bank lowered rates earlier in June.<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"<p>The Swiss National Bank (SNB) reduced its key interest rate to 0% on Thursday, citing a decline in inflation, pressure from a stronger Swiss franc, and uncertainty fuelled by US\u00a0trade policies. This marked the sixth consecutive rate cut since March 2024, bringing the benchmark down from 0.25%. The move comes after inflation in Switzerland turned [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[],"class_list":["post-10956","post","type-post","status-publish","format-standard","hentry","category-english-news"],"_links":{"self":[{"href":"https:\/\/ipp-news.com\/index.php?rest_route=\/wp\/v2\/posts\/10956","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ipp-news.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ipp-news.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ipp-news.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/ipp-news.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=10956"}],"version-history":[{"count":0,"href":"https:\/\/ipp-news.com\/index.php?rest_route=\/wp\/v2\/posts\/10956\/revisions"}],"wp:attachment":[{"href":"https:\/\/ipp-news.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=10956"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ipp-news.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=10956"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ipp-news.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=10956"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}