Swiss National Bank Cuts Rates to 0%, Defies US Watchlist Threat

The Swiss National Bank has lowered its key interest rate to 0%, marking a decisive MOVE to counter easing inflationary pressures. Chairman Martin Schlegel reaffirmed the central bank's commitment to forex interventions if necessary, despite Switzerland's recent addition to the US Treasury's currency watchlist.

Market expectations aligned closely with the decision, with an 81% probability priced in ahead of the announcement. The SNB's statement emphasized declining inflationary trends as the rationale for the cut, dismissing potential trade repercussions from US scrutiny.

Schlegel's weekend remarks to SRF broadcasters struck a defiant tone: "When we have intervened in the past, we have done it only to achieve our goal of price stability." The chairman explicitly denied currency manipulation allegations, framing the bank's actions as purely monetary policy measures.