The key rate in Switzerland has returned to 0%. The country's National Bank allows for further reductions
The Swiss National Bank (SNB) has cut its key interest rate by 25 basis points to 0% for the sixth time to curb deflation risks and support the economy, Swiss Radio and Television reports.
The last time such an interest rate was in effect was until June 2022. Since then, the SNB has begun to actively raise the rate to stop inflation.
By mid-2023, the country's interest rate had risen to 1.75%. In May 2025, consumer prices in Switzerland fell by 0.1%, so the SNB changed course again.
According to the SNB, inflation in Switzerland will remain low in the coming years: 0.2% in 2025, 0.5% in 2026, and 0.7% in 2027.
The main threat to Switzerland at the moment is deflation, which could slow down the economy. SNB Chairman Martin Schlegel said that further rate cuts or the introduction of negative rates remain possible.
He also did not rule out intervention in the foreign exchange market if the situation requires it.
The SNB expects the Swiss economy to grow by 1–1.5% in 2024 and 2026. After a strong start to the year, growth rates may slow down somewhat.
- On June 3, it was reported that Switzerland was on the verge of deflation – a prolonged decline in the general price level that could threaten the country's economy.
