ISTANBUL 

The Swiss National Bank (SNB) on Thursday said it reduced its policy rate by 25 basis points to 1.25%, maintaining the position as a frontrunner in the easing of monetary policy.

"The underlying inflationary pressure has decreased again compared to the previous quarter," the SNB said. "With today's lowering of the SNB policy rate, the SNB is able to maintain appropriate monetary conditions.

The SNB’s move to cut interest rates by 25 basis points to 1.5% in March was its first rate cut in nine years.

Switzerland’s inflation stood at 1.4% in May as a result of higher prices in rents, tourism, and oil products.

The bank estimates annual inflation rate to be 1.3% for 2024, 1.1% for 2025, and 1% for 2026.

The SNB expects a GDP growth of around 1% in 2024, and of 1.5% for 2025.​​​​​​​​​​​​​​