On June 19, 2025, the Swiss National Bank (SNB) cut its policy interest rate by 25 basis points, lowering it from 0.25% to zero percent. This marks the sixth consecutive rate cut since 2024 and returns Switzerland to a zero interest rate policy for the first time since 2022. The decision was driven by negative inflation, which stood at -0.1% in May, a strengthening Swiss franc, and global economic uncertainty, including concerns related to U.S. trade policy and tariff risks. The SNB aims to deter capital inflows that have been pushing up the franc and to support the Swiss economy amid these deflationary pressures. The bank also reintroduced tiered remuneration for sight deposits. Inflation forecasts were revised downward, with expectations of 0.2% for 2025, 0.5% for 2026, and 0.7% for 2027. Analysts indicate that a move into negative interest rate territory remains possible if economic conditions worsen. The SNB's action contrasts with other major central banks and reflects ongoing challenges in managing currency strength and inflation dynamics in Switzerland.