Swiss Central Bank Slashes Rates Back to Zero Amid Trade War Fallout
Switzerland’s central bank has revived the era of zero interest rates, a monetary stance last seen during the pandemic boom, as global economic headwinds intensify.
On Thursday, the Swiss National Bank (SNB) announced a cut in its benchmark rate to 0%, marking the bank’s sixth consecutive reduction since March 2024. The decision comes in response to subdued inflation, a persistently strong Swiss franc, and mounting pressure from President Donald Trump’s renewed trade war, which has targeted surplus economies like Switzerland and China.
Economists say the SNB’s move could foreshadow similar action from other European and developed-market central banks grappling with weakening growth and geopolitical turmoil.
The return of a zero interest rate policy (ZIRP) also raises the possibility of renewed momentum for risk assets such as bitcoin (BTC), which historically surged during periods of ultra-loose monetary policy.
With fiat currencies facing challenges and monetary conditions easing, investors may increasingly turn to bitcoin and digital assets as alternative stores of value outside the traditional financial system.
