Swiss rate cut spotlights Europe's disinflation risk

The Swiss National Bank lowered interest rates to zero, spotlighting worries of falling inflation in Europe.
The central bank's decision — along with a similar move by Norway — marks a contrast to peers across the rich world: The Bank of England held interest rates at 4.25% Thursday, while the US Federal Reserve also declined to cut rates the day before, amid uncertainty on the economic impact of Washington's tariffs and the Israel-Iran conflict.
The continent largely expects both inflation and growth to slow, however, and the Swiss decision serves as 'a reminder of the disinflation risks in core Europe,' Commerzbank economists wrote in a note to clients, while European economic growth has 'never really recovered from the 2008 financial crisis,' a Center for European Reform paper warned.
— Prashant Rao

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