SNB Cuts Key Interest Rate to 1.25% – Second Consecutive Reduction

The Swiss National Bank (SNB) lowered its key interest rate again on June 20, this time by 0.25 percentage points to 1.25%. The goal is to support the economy and weaken the Swiss franc, thereby boosting the export sector. This is the second consecutive rate cut, a response to decreasing inflationary pressures. However, the SNB cautions that there is limited room for further rate reductions.

This move reflects the central bank's proactive stance in addressing economic headwinds while acknowledging the complexities of monetary policy in a low inflation environment. The decision is part of a broader strategy to mitigate the risk of economic slowdown and maintain price stability, while keeping an eye on global economic developments that might impact Switzerland's financial stability. The SNB remains committed to adjusting its policies as necessary to ensure sustainable economic growth.