SNB Set to Cut to Zero But Shirk From Negative Rate for Now
BloombergMonday, June 16, 2025 at 4:00:00 AM
The Swiss National Bank (SNB) is expected to drop its interest rate to zero this week and hold it there for a while, according to economists surveyed by Bloomberg. This comes as Switzerland’s latest inflation forecasts suggest prices will keep rising at a sluggish pace—meaning the bank isn’t rushing to push rates into negative territory just yet.
Editor’s Note: Interest rates are like the economy’s thermostat—they help control how fast prices rise or fall. The SNB’s move to zero signals they’re keeping things steady for now, but it also hints at caution. If inflation stays weak, they might have to get more aggressive later (like cutting below zero). For everyday Swiss folks and businesses, this means borrowing stays cheap, but savers won’t see much return. It’s a balancing act, and the SNB isn’t ready to tip the scales further—yet.
— Curated via WP Now’s
