After becoming the first developed country central bank to cut interest rates in March, the Swiss National Bank announced today its monetary policy decision and declared a further 25 basis-point reduction in the benchmark interest rate to 1.25%. It is in line with market expectations.

Previously, Swiss National Bank officials remained silent for three consecutive weeks, causing market speculation about their intentions. Some investors speculated that due to the stagnation in the progress of inflation decline, the Swiss National Bank might maintain status quo. However, the Swiss National Bank ultimately decided to cut interest rates, stating in the policy meeting statement that potential inflationary pressures had once again declined. After the statement was issued, the Swiss franc fell, with the exchange rate against the euro falling by about 0.4% and the exchange rate against the dollar falling by 0.5%. Some media outlets speculated that the Swiss National Bank lowered interest rates because, given the push of geopolitical crises, the Swiss franc has been rising, and interest rate cuts are needed to curb the rise of the Swiss franc. This month, French President Emmanuel Macron called for interim elections in France, and the far-right forces could potentially win, further driving up the Swiss franc's momentum, as investors view the Swiss franc as a safe asset. Compared with Switzerland, other developed economies still hesitate on when to cut interest rates, Norwegian officials may postpone the expected easing policy until the second half of the year, while persistent inflation concerns will also cause the Bank of England to maintain status quo. The Federal Reserve actually reduced the expectation of interest rate cuts for the year at the June meeting, and the European Central Bank also emphasized that they will not cut interest rates continuously in the future.

However, the Swiss National Bank ultimately decided to cut interest rates, stating in the policy meeting statement that potential inflationary pressures had once again declined.

Compared with the previous quarter, potential inflationary pressures have once again declined.

After the statement was issued, the Swiss franc fell, with the exchange rate against the euro falling by about 0.4% and the exchange rate against the dollar falling by 0.5%.

Some media outlets speculated that the Swiss National Bank lowered interest rates because, given the push of geopolitical crises, the Swiss franc has been rising, and interest rate cuts are needed to curb the rise of the Swiss franc. This month, French President Emmanuel Macron called for interim elections in France, and the far-right forces could potentially win, further driving up the Swiss franc's momentum, as investors view the Swiss franc as a safe asset.

Compared with Switzerland, other developed economies still hesitate on when to cut interest rates, Norwegian officials may postpone the expected easing policy until the second half of the year, while persistent inflation concerns will also cause the Bank of England to maintain status quo. The Federal Reserve actually reduced the expectation of interest rate cuts for the year at the June meeting, and the European Central Bank also emphasized that they will not cut interest rates continuously in the future.