Swiss central bank cuts interest rates to zero percent

ZURICH   –  The Swiss National Bank has cut interest rates by a quarter point to zero percent, refraining from returning to negative rates despite its gloomy outlook for the global economy. The move is aimed at taming the Swiss franc, a safe haven that has soared against the dollar since President Donald Trump launched his tariff onslaught in April. It also comes as consumer price increases have eased in Switzerland. “Inflationary pressure has decreased compared to the previous quarter. With easing of monetary policy, the SNB is countering the lower inflationary pressure,” the central bank said in a statement. “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.” The central bank said Swiss gross domestic product growth was strong in the first quarter of the year — largely due to exports to the United States being brought forward ahead of Trump’s tariff blitz. Stripping out that factor, growth was more moderate, and is likely to slow again and remain subdued for the rest of the year, the SNB said.