ZURICH – The Swiss Central Bank lowered its key rate of a quarter point of percentage on Thursday to bring it back to 0%, for the moment, rebounding in negative terrain, despite prospects that “Have darkened” for the global economy. The Swiss National bank (BNS) lowered its inflation forecast for 2025 to 0.2% (compared to 0.4% previously) and 0.5% for 2026 (against 0.8% previously) but left its anticipated growth forecast, always tabling on an increase in gross domestic product (GDP) between 1% and 1.5%, it said in a press release.

“The perspectives have darkened for the coming quarters due to the rise in trade tensions” underlined the monetary institution in the press release. In its initial scenario, the program institute says it expects “A slowdown in the world economy in the coming quarters” believing that inflation “Should increase in the United States”. In Europe, she counts on the other hand on “A new drop in inflationary pressure”.But this scenario “Remains surrounded by great uncertainty” she said that “Trade barriers, such as, could further increase and slow down the world economy” more strongly “.

“The perspectives have darkened for the coming quarters due to the rise in trade tensions”

In Switzerland, inflationary pressure has decreased, added the monetary institution to explain its decision, saying that it is ready to remain active if necessary on the exchange market and to adapt its monetary policy if necessary. Upstream of its quarterly policy decision, many economists had wondered if the SNB was going to bring its rate back to 0% or switch to negative interest rate as had been the case for seven years between 2015 and 2022.

The wave of inflation in Switzerland has been brought under control more quickly than in its neighbors in Europe, the consumer price index having even fallen into negative field in May, at -0.1%. But the overwhelming majority of economists believed that the SNB would probably wait a bit before returning to a negative interest rate, while waiting to learn more about reciprocal customs duties from early July.