The Swiss National Bank reduced interest rates by 25 basis points on Thursday, echoing steps to lower borrowing costs by the European Central Bank and U.S. Federal Reserve, and left the door wide open for more rate cuts as inflation cools sharply.

Switzerland’s central bank cut its key interest rate for the third straight meeting as it pivots away from worries about high inflation toward concerns about the impact of a strong currency on exporters.

THE Swiss National Bank reduced interest rates by 25 basis points on Thursday (Sep 26), echoing steps to lower borrowing costs by the European Central Bank and US Federal Reserve, and left the door wide open for more rate cuts as inflation cools sharply.

The Swiss National Bank reduced interest rates by 25 basis points today, echoing steps to lower borrowing costs by the European Central Bank and US Federal Reserve, and left the door wide open for more rate cuts as inflation cools sharply.

The fashionable idea that the world economy has arrived in a new more inflationary regime post-pandemic may ring hollow in Switzerland - one small vignette questioning how durably things have changed for the world's big central banks.

The Swiss National Bank on Thursday took a third step to loosen monetary policy this year, bringing its key interest rate down by 25 basis points to 1.0%. The reduction comes amid subdued domestic inflation and a rally in the Swiss franc.