The Swiss National Bank lowered its policy interest rate by 25 basis points to 0.25% at its quarterly monetary policy assessment on 20 March 2025, delivering a fifth consecutive reduction as the Governing Board pointed to low inflationary pressure and heightened downside risks to inflation.
The rate now stands at its lowest level since the SNB ended its experiment with negative interest rates in 2022. Inflation fell to 0.3% in February, at the low end of the central bank's definition of price stability (a range of zero to 2%), and the new conditional forecast puts average inflation at 0.4% for 2025 and 0.8% for both 2026 and 2027.
FX INTERVENTION REMAINS AN OPTION
The Governing Board reiterated that it remains willing to be active in the foreign exchange market as necessary.
The SNB's next quarterly assessment is scheduled for June 2025.