- UBS AG
- 19 June 2025 09:58:28
Source: Sharecast
The central bank said it was "countering the lower inflationary pressure" with the 25 basis point cut.
It continued: "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."
Inflation in Switzerland has eased from 0.3% in February to -0.1% in May. The SNB said the decline was largely down to a fall in prices in tourism and oil products. It also noted that mounting trade tensions meant the global economic outlook for the coming quarters had "deteriorated".
It added: "The scenario for the global economy remains subject to high uncertainty. For example, trade barriers could be raised further, leading to a more pronounced slowdown in the global economy.
"At the same time, it cannot be ruled out that fiscal policy will support growth more strongly than expected."
The SNB is currently forecasting GDP growth of between 1% and 1.5% for Switzerland for both 2025 and 2026.
The central bank also published its Financial Stability Report, which noted that economic and financial conditions for the Swiss financial sector had "deteriorated" over the past 12 months.
In the credit market, outstanding loans had continued to increase, including the acquisition of Credit Suisse by UBS, despite structural changes.
It also noted that regulatory weaknesses remained and should be addressed to strengthen the financial system.
For the banking sector as a whole, however, profitability improved over the last year, led by UBS.