Swiss Rate Cut Marks Possible Return to Zero Interest Strategy

Swiss National Bank Cuts Rates to Zero, Signaling Return of Ultra-Loose Policy

The Swiss National Bank (SNB) has brought back the era of zero interest rates, a monetary stance not seen since the pandemic-era stimulus boom, as global economic uncertainty deepens.

On Thursday, the SNB slashed its benchmark interest rate to 0%, marking its sixth rate cut since March 2024. The move reflects slowing inflation, continued strength in the Swiss franc, and fallout from President Donald Trump’s revived trade tensions, which have targeted surplus economies such as Switzerland and China.

Analysts suggest the SNB’s decision could be a harbinger of similar steps across Europe and other advanced economies grappling with geopolitical risks and sluggish growth.

The re-emergence of a zero interest rate policy (ZIRP) is also sparking speculation about renewed interest in risk assets like bitcoin (BTC), which surged during previous phases of aggressive monetary easing.

As traditional currencies come under strain and central banks pivot back toward easier policy, investors could increasingly look to digital assets as alternative stores of value outside the traditional financial system.