Swiss Central Bank Cuts Rates to Zero Amid Safe-Haven Surge—Negative Rates Still on Table

Key Points

• It seems likely that Switzerland has entered an era of zero interest rates as of today, June 19, 2025.

• The Swiss National Bank (SNB) cut its policy rate to 0% from 0.25%, marking the sixth consecutive rate cut since March 2024.

• Research suggests this move aims to counter the Swiss franc's appreciation and address weak inflationary pressures, with consumer prices recently falling by 0.1%.

Background

Switzerland's central bank, the SNB, has been adjusting its monetary policy to manage economic conditions. The recent rate cut to zero is part of a series of actions taken since March 2024, reflecting efforts to stabilize the economy amid global uncertainties.

Details

The rate cut was announced today, June 19, 2025, and is seen as a response to the Swiss franc strengthening, which has been pushing down inflation. This decision aligns with the SNB's strategy to maintain price stability, especially as consumer prices have dipped into negative territory.

---

Survey Note: Comprehensive Analysis of Switzerland's Zero Interest Rate Era

Switzerland's entry into an era of zero interest rates, effective as of June 19, 2025, marks a significant shift in its monetary policy, driven by the Swiss National Bank's (SNB) recent decision to cut its policy rate to 0% from 0.25%. This move, the sixth consecutive rate cut since March 2024, reflects ongoing efforts to manage economic challenges, particularly the appreciation of the Swiss franc and weak inflationary pressures. Below, we provide a detailed examination of the event, its context, and implications, drawing from recent reports and analyses.

Event Overview

On June 19, 2025, the SNB announced a 25 basis point cut, bringing the policy rate to 0% from the previous 0.25%. This decision was anticipated by markets, as indicated by a Reuters poll, and aligns with the bank's efforts to counteract deflationary pressures. The rate cut follows a series of reductions starting from March 2024, when the rate was at 1.75%, indicating a consistent easing of monetary policy over the past year.

Economic Context and Rationale

The primary drivers for this rate cut include the significant appreciation of the Swiss franc, which has gained roughly 11% against the dollar in 2025. This strengthening, fueled by safe-haven flows amid global uncertainties such as U.S. trade policies and Middle East tensions, has pushed inflation downward. Recent data shows consumer prices fell by 0.1% in May 2025 compared to the previous year, marking the lowest inflation reading in four years. The SNB's target inflation range of 0-2% underscores the urgency to stimulate economic activity and prevent deflation.

Analysts suggest this move is part of a broader strategy to rein in the franc's rapid appreciation, which has been acting as a safe haven during periods of global economic uncertainty. The SNB's global economic outlook, as reported, notes weaker growth, rising U.S. inflation, and decreasing inflationary pressure in Europe, with high uncertainty and potential for raised trade barriers further complicating the economic landscape.

Historical Context

This is not the first time Switzerland has adopted a zero interest rate policy. The SNB last used negative rates between late 2014 and 2022, a period marked by similar challenges with the franc's strength. While the current policy stops at zero, the SNB chairman has indicated that negative rates are not entirely ruled out, stating, "As a central bank you can never exclude measures, but the hurdle is higher now." This suggests a cautious approach to future policy adjustments, with a 53% probability of further cuts in September 2025, according to market expectations.

Implications and Analyst Opinions

The return to zero interest rates is expected to have several implications. For savers and pension funds, the policy may pose challenges, potentially affecting returns and investment strategies. The real estate market could also face pressures, as low rates might encourage borrowing but could lead to asset bubbles if not managed carefully. Analysts from ING Bank and Capital Economics suggest another cut in September is likely, with some even predicting a possible return to negative rates. Conversely, EFG analysts believe the SNB may pause unless economic conditions worsen significantly.

Comparative Context

This decision comes amidst varied global monetary policies. For instance, Norway's central bank cut rates for the first time in five years, while the Bank of England and the U.S. Federal Reserve held rates steady. Earlier in June 2025, the European Central Bank (ECB) trimmed rates by 25 basis points, indicating a broader trend of easing monetary policy in response to cooling inflation pressures.

Detailed Breakdown of Key Metrics

To provide a structured overview, the following table summarizes the key details of the rate cut and related economic indicators:

Detail	Information
Date of Rate Cut	June 19, 2025
Previous Rate	0.25%
New Rate	0%
Basis Points Cut	25 basis points
Market Expectation	Expected by markets and a Reuters poll
Probability of Further Cuts in September	53%
Last Use of Negative Rates	Between late 2014 and 2022
Inflation Target Range	0-2%
Recent Inflation Reading	-0.1% (lowest in four years, May 2025)
Swiss Franc vs Dollar Post-Decision	Briefly strengthened, then traded at 0.8191 francs
Number of Consecutive Rate Cuts	Sixth
SNB's Global Economic Outlook	Weaker growth, rising U.S. inflation, decreasing inflationary pressure in Europe, high uncertainty, potential for raised trade barriers
SNB's Inflation Forecasts Lowered For	2025, 2026, 2027
Analyst Opinions on Future Cuts	Likely another cut in September, possible return to negative rates (ING Bank, Capital Economics); may pause unless economy worsens (EFG)
SNB Chairman Quote on Negative Rates	"As a central bank you can never exclude measures, but the hurdle is higher now"
Side Effects of Negative Rates Mentioned	Challenges for savers, pension funds, real estate market
Related Central Bank Actions	Norway's first rate cut in five years, Bank of England kept rates steady, U.S. Federal Reserve held rates steady, ECB trimmed by 25 basis points earlier in June 2025
Swiss Franc Gain in 2025 Against Dollar	Roughly 11%

This table encapsulates the critical data points, providing a comprehensive view of the policy shift and its broader context.

Conclusion

Switzerland's entry into an era of zero interest rates as of June 19, 2025, reflects the SNB's strategic response to economic challenges, particularly the franc's appreciation and deflationary pressures. With consumer prices dipping into negative territory and global uncertainties persisting, this move aligns with efforts to stabilize the economy. Future policy directions remain uncertain, with potential for further cuts or even a return to negative rates, depending on economic developments.

---

Key Citations

• Swiss National Bank cuts rates to zero, will not rule out negative rates

• Swiss Central Bank Cuts Interest Rate to Deter Search for Safe Haven

• Zero Interest Rates Are Back in Europe

标签:   游戏头条 资讯头条 ggamen科技资讯 ggamen科技 ggamen科技资讯头条 科技资讯头条 ggamen游戏财经 新闻网 科技新闻网 科技新闻 ggamen ggamen游戏新闻网 科技新闻 科技新闻网 新闻网 ggamen游戏财经 科技资讯头条 ggamen科技资讯头条 ggamen科技资讯 资讯头条 ggamen ggamen游戏新闻网 科技新闻网 新闻网 ggamen游戏财经 科技资讯头条 ggamen科技资讯头条 ggamen科技 资讯头条 游戏头条