Swiss National Bank's Possible Return to Negative Rates

Swiss National Bank Chairman Martin Schlegel indicated the potential, albeit reduced, possibility of returning to negative interest rates. While the likelihood is smaller following recent changes, negative rates are not entirely ruled out. Schlegel recalled the SNB's previous use of this policy until 2022.

Swiss National Bank Chair Martin Schlegel has hinted at a slight possibility of reintroducing negative interest rates, although the chance of such a move has diminished following the bank's recent cost-cutting measures.

In a statement to reporters, Schlegel indicated that while the prospect of future negative rates is small, it cannot be entirely dismissed.

This announcement comes after the SNB deployed negative interest rates for seven years until 2022, a policy Schlegel admitted was not favored by the central bank.

(With inputs from agencies.)