SNB Lowers Rates and Flags Further Cuts as Inflation Eases

SWISS - ZURICH. The Swiss National Bank reduced interest rates by 25 basis points on Thursday, echoing steps to lower borrowing costs by the European Central Bank and U.S. Federal Reserve, and left the door wide open for more rate cuts as inflation cools sharply.

The SNB cut its policy rate to 1.00%, the lowest level since early 2023, as expected by analysts in a Reuters poll. The cut was its third such reduction this year. Markets had priced in a 55% probability of a 25 basis point cut beforehand.

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