Historic Rate Cut by SNB

In a significant move to counteract low inflationary pressures and mitigate downside risks, the Swiss National Bank (SNB) has announced a reduction in its policy rate by 0.25 percentage points, setting a new historic low of 0.25%. This decision, effective from March 21, 2025, underscores the bank's commitment to maintaining appropriate monetary conditions.

SNB's Inflation and GDP Forecast

The SNB also provided a forecast indicating a gradual increase in the annual inflation rate, projecting it to reach 0.4% in 2025, and further rise to 0.8% in both 2026 and 2027. On the economic growth front, the bank anticipates Switzerland's GDP to grow between 1% and 1.5% in 2025, with a steady growth rate of 1.5% expected in 2026.

Commitment to Price Stability

Emphasizing its dedication to price stability, the SNB has pledged to closely monitor the economic landscape and adjust its monetary policies as necessary. This proactive stance aims to ensure that inflation remains within a range conducive to long-term price stability, safeguarding the Swiss economy against unforeseen fluctuations.