The Swiss National Bank (SNB) announced on Thursday its decision to cut its policy rate by 0.25 percentage points to 0.25%, effective March 21, 2025.
In its statement, the bank stressed that the move is "ensuring that monetary conditions remain appropriate, given the low inflationary pressure and the heightened downside risks to inflation. The SNB will continue to monitor the situation closely and adjust its monetary policy if necessary, to ensure that inflation remains within the range consistent with price stability over the medium term."
Furthermore, the SNB predicted that the annual inflation rate in Switzerland will stand at 0.4% in 2025, 0.8% in 2026, and 0.8% in 2027. It also estimated that the country's gross domestic product (GDP) will expand by between 1% and 1.5% in 2025, and by 1.5% in 2026.
