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Swiss National Bank cuts interest rates to zero

BY Reuters | ECONOMIC | 06/19/25 03:30 AM EDT

By John Revill

ZURICH, June 19 (Reuters) - The Swiss National Bank cut its interest rate to zero on Thursday in response to falling inflation, appreciation pressure on the Swiss franc and economic uncertainty caused by the U.S. administration's unpredictable trade policy.

The SNB reduced its policy rate by 25 basis points from 0.25%, as expected by markets and a Reuters poll.

It was the central bank's sixth rate cut in succession after it started reducing borrowing costs in March 2024.

The central bank now stands on the brink of returning to negative interest rates, a policy it maintained from 2014 to 2022 but which was unpopular with banks, savers and insurance companies.

(Reporting by John Revill Editing by Dave Graham)

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In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

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