Swiss National Bank cuts interest rates to zero

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.