Swiss Interest Rates: A Balancing Act

The Swiss National Bank, led by Chairman Martin Schlegel, has not ruled out returning interest rates to negative levels despite recent cuts reducing this likelihood. Negative rates, historically unpopular with banks and savers, aim to curb the Swiss franc's appreciation and support Swiss exporters.

The Swiss National Bank (SNB) might revisit negative interest rates, according to Chairman Martin Schlegel, although recent rate cuts have lessened this possibility.

Schlegel emphasized that while negative rates are not preferred, they remain a tool to manage the franc's appreciation, which impacts Swiss exporters.

Utilized from 2014 to 2022, this strategy was disliked by banks and savers but aimed to mitigate the currency's strength and its effect on the economy.

(With inputs from agencies.)