SNB Cuts Policy Rate to 0.25 Percent as Inflation Cools

ZURICH - The Swiss National Bank cut its policy rate by 0.25 percentage points to 0.25 percent, saying monetary conditions had to stay appropriate given low inflation and downside risks. Inflation had dropped from 0.7 percent in November to 0.3 percent in February, helped by cheaper electricity.

Banks' sight deposits will be paid the new policy rate up to a threshold and zero above it. The SNB again said it remains willing to intervene in the foreign exchange market.

Exporters wanted more, households wanted the bill

Machine builders in Aargau called it a step, not a rescue. Households with expiring fixed mortgages will reprice into a milder market than a year ago. June will be the next scheduled look.