The Swiss National Bank (SNB) has reduced its main policy rate by 0.25 percentage points to 1.25%, marking the second consecutive reduction this year following a similar cut in March. This decision, effective Friday, is driven by a decline in underlying inflationary pressures despite rising costs in rents, tourism services, and oil products. The SNB emphasized that current inflation is primarily propelled by higher prices for domestic services. This move contrasts with the ongoing tightening policies of other major central banks, though some have recently started easing their monetary policies as well. The SNB also noted potential risks from geopolitical tensions and persistent inflation in other countries.