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Swiss Inflation Drops to Zero; SNB Chairman Schlegel Eyes June 25bp Cut, Possible Negative Rates

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Updated May 6, 2025, 08:07 AM

Switzerland's inflation rate dropped to 0.0% in April, marking the lowest level in four years, according to recent reports. This decline follows a previous month-on-month Consumer Price Index (CPI) EU Harmonized increase of 0.7%, up from -0.1%. The Swiss National Bank (SNB) is considering further monetary policy adjustments in response, including a potential 25 basis points interest rate cut in June that could bring the benchmark rate to zero. Some economists even anticipate a return to negative interest rates.

SNB Chairman Thomas Schlegel emphasized the bank's commitment to price stability amid these developments. He noted the Swiss franc has appreciated significantly and confirmed readiness to intervene in the foreign exchange market if necessary. Schlegel also highlighted the potential for slower economic growth in Switzerland due to prevailing uncertainties. While acknowledging that negative interest rates are unpopular, he stated that the SNB is prepared to implement them again if required.

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#Switzerland #Consumer Price Index #EU #Swiss National Bank #SNB #Thomas Schlegel #Swiss #Schlegel

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Sources

bloomberg.com(2)handelsblatt.com skai.gr

First Squawk

@FirstSquawk

SNB CHAIRMAN SCHLEGEL: WE HAVEN'T RULED OUT NEGATIVE INTEREST RATES

LiveSquawk

@LiveSquawk

SNB Chairman Schlegel: We Haven't Ruled Out Negative Interest Rates - No One Likes Negative Rates, But If We Have To It We Are Prepared To Do It Again - Potential For Lower Growth In Switzerland Because Of Uncertainty - We Expected Swiss Inflation To Come Down

FinancialJuice

@financialjuice

SNB's Chairman Schlegel: No one likes negative rates, but if we have to it we are prepared to do it again.