Market Information Friday 20 June 2025

The Swiss central bank has cut interest rates to zero in an effort to curb the sharp appreciation of the franc. The SNB lowered the policy rate from 0.25 to 0.00 percent. This marked the sixth consecutive cut. In March 2024, the rate was still at 1.75 percent. Thursday’s decision did not come as a surprise. With this move, the policy rate is once again approaching negative territory — a situation Switzerland experienced for eight years until September 2022. Switzerland is struggling with a strong franc, as investors increasingly view the currency as a safe haven amid trade uncertainty and escalating tensions in the Middle East. The Swiss central bank also lowered its short-term inflation outlook.

The Bank of England held interest rates steady at 4.25 percent on Thursday, as expected. In May, the Bank Rate was cut by 25 basis points to its current level. According to the BoE, global uncertainty remains high.

The Turkish central bank kept its policy rate unchanged at 46 percent on Thursday, according to its latest interest rate decision. Lending rates were also maintained. Policymakers observed a decline in core inflation in May and expect that downward trend to continue in June. Recent second-quarter figures show that domestic demand is slowing, possibly due to recent geopolitical developments and the trade war. The Turkish central bank aims to maintain a tight monetary policy for the time being until price stability is achieved through lower inflation. The medium-term inflation target currently stands at five percent.

The 6M Euribor decreased with 1 basis point to 2.06% compared to previous business day. The 10Y Swap increased with 3 basis points to 2.55% compared to previous business day.

In the attachment, today’s market data on money and capital market rates as well as other rates are presented.