Swiss National Bank Cuts Policy Rate

In a significant move to counter low inflationary pressures and mitigate downside risks to inflation, the Swiss National Bank (SNB) has decided to reduce its policy rate by 25 basis points to 0.25%. This adjustment is set to take effect from March 21, 2025.

Monetary Policy Adjustments

The SNB emphasized that this decision aims to maintain appropriate monetary conditions. The bank is committed to closely monitoring the economic landscape and is prepared to make further adjustments to its monetary policy as necessary. The goal is to ensure that inflation remains within a range that is consistent with medium-term price stability.

Economic Outlook

Looking ahead, the SNB forecasts an annual inflation rate of 0.4% for 2025, with a slight increase to 0.8% expected in both 2026 and 2027. Additionally, the bank anticipates Switzerland's GDP to grow between 1% and 1.5% in 2025, followed by a 1.5% growth in 2026.