ZURICH, June 20Reuters The Swiss National Bank cut interest rates on Thursday, maintaining the central bank39;s position as a frontrunner in the global policy easing cycle now underway, sending the Swiss franc lower and stocks higher.

The SNB cut its policy rate by 25 basis points to 1.25, as expected by twothirds of analysts polled by Reuters, following a similar cut in March.

The decision had been finely balanced, given a recent rebound in economic growth and a break in the trend of gently falling inflation in Switzerland.

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

Taking into account today39;s policy rate cut, the new conditional inflation forecast is similar to that of March. Over the longer term, it is slightly below the previous forecast.

Before the decision, markets priced in a 68 likelihood of a cut, with a 32 probability for rates to remain unchanged.

On a busy day for central banks on Thursday, the Bank of England is also due to announce its latest decision, with economists expecting it to keep its rates unchanged. Norway39;s central bank will also give its latest update.

The Swiss franc fell somewhat and stocks rallied on Thursday after the SNB announced the rate cut.

Switzerland39;s blue chip stock index rose 0.5, having been little changed before the announcement.

The Swiss decision…