SNB’s Schlegel: We cannot exclude negative interest rates

January 22, 2025 at 09:39AM

Inflation is well inside our target range and over our forecast cycle

Not uncomfortable with inflation at the moment

But cannot exclude possibility of negative interest rates

If we have to do it, we will

Swiss franc is traditionally treated as a safe haven

Trade conflicts are not beneficial for Switzerland

Ready to intervene in FX market if necessary

Another currency cap is not something we are discussing

The challenge for the SNB now is to rein in the strength of the franc currency. The inflation picture looks to be well in control but rate cuts are still in consideration in trying to manage the exchange rate.

This article was written by Justin Low at www.forexlive.com.

SNB’s Schlegel: We cannot exclude negative interest rates