Switzerland may return to negative rates

The Swiss National Bank (SNB) has declared its readiness to take decisive measures to prevent inflation from falling below the target level necessary to ensure price stability. The head of the bank, Martin Schlegel, during a speech in Zurich, noted that currency interventions and lowering interest rates to negative values are considered among possible steps.  

Although the use of negative interest rates is not popular, Schlegel stressed that the SNB is ready to resort to this tool again if necessary to maintain the stability of the economy. According to him, the bank strives to avoid such decisions, but its willingness to act remains unchanged.  

This position underscores the SNB's commitment to its primary goal of maintaining price stability. The willingness to engage in currency interventions and further rate cuts demonstrates the bank's determination to take any necessary measures to protect the economy from the threats posed by falling inflation.