Swiss Interest Rate Cut to Zero Percent – Currency Thoughts

Swiss Interest Rate Cut to Zero Percent

June 19, 2025

The Swiss National Bank policy interest rate as expected was sliced 25 basis points to zero percent, its lowest level since September 2022 and down from a peak of 1.75% reached in June 2023 and maintained until an initial cut in March 2024. Swiss consumer price inflation turned negative (-0.1%) in May for the first time in 50 months, and monetary officials again cut their forecast future path of inflation projecting lower year-average rates of 0.2% this year, followed by 0.5% in 2026 and 0.7% in 2027. A released statement today asserts that “Without today’s rate cut, the forecast would have been lower.” The Swiss franc is considered overvalued and is at risk of becoming more so in these geopolitically tense times, so the statement also expresses a willingness “to be active in the foreign exchange market as necessary.”

Copyright 2025, Larry Greenberg. All rights reserved. No secondary distribution without express permission.

Tags: Swiss National Bank

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