Swiss National Bank Cuts Policy Rate to 1.25% in Second Consecutive Reduction

The Swiss National Bank reduced its policy rate by 25 basis points to 1.25% at its June 2024 quarterly monetary policy assessment, its second consecutive cut. The decision was published in the SNB's press release on 20 June 2024.

Having cut rates for the first time in over nine years at the March 2024 meeting, the SNB moved again in June.

SNB MAINTAINS READINESS FOR FX MARKET INTERVENTION

Alongside the rate decision, the SNB reiterated its readiness to intervene in foreign exchange markets if necessary.

The European Central Bank made its first rate cut in almost five years in June 2024.

NEXT ASSESSMENT

At 1.25%, the SNB's policy rate is below those of the Bank of England and the US Federal Reserve.

The SNB's quarterly assessment cycle means the next scheduled opportunity to adjust rates falls at the September 2024 meeting. The central bank indicated that it would continue to monitor the evolution of inflation, the global economic outlook, and exchange rate developments carefully in determining whether further adjustments are appropriate at that point.