Swiss National Bank ready to take rates below zero to tackle low inflation

Switzerland continues to be a "safe haven" for international capital in times of crisis. The risk of deflation in the Confederation is increasing and negative interest rates are driving the redistribution from bottom to top.

Swiss National Bank ready to take rates below zero to tackle low inflation

ZURICH (Reuters) -The Swiss National Bank is ready to intervene in the foreign currency markets and cut interest rates even below zero to prevent inflation falling below its price stability target, Chairman Martin Schlegel said on Tuesday. “No one likes these negative interest rates, obviously the Swiss National Bank doesn’t like it,” Schlegel told an event in Zurich. “But if we have to do it, the negative interest rates, we’re certainly prepare…

Dominant by accident the Swiss National Bank’s Growing influence in the early days of floating exchange rates

The 1970s was a decisive decade in monetary history as the switch to floating exchange rates made central bankers weighty actors in economic policymaking. This paper will show that this rise in power was not pronounced by decree in the Swiss case. Politicians eyed the Swiss National Bank’s growing influence critically, some flirting with installing fiscal dominance. However, faced with widespread sympathy for central bank autonomy among the busi…

Switzerland recorded its slowest annual consumer price growth in April since the beginning of 2020. Inflation has stalled at zero, partly due to the strong franc, which is depressing the prices of imported goods. Imported fuels and energy in particular have become cheaper for the Swiss. On Tuesday, the Swiss central bank announced that it is ready to intervene in the foreign exchange markets and lower interest rates even below zero.

SNB' Schlegel signals willingness to revisit negative rates - Action Forex

SNB Chairman Martin Schlegel said that while the central bank does not favor negative interest rates, it remains fully prepared to reintroduce them if necessary. Speaking at an event today, Schlegel said “if we have to do it, the negative interest rates, we’re certainly prepared to do it again”. “For the last couple of quarters, […] The post SNB’ Schlegel signals willingness to revisit negative rates appeared first on Action Forex.

EUR/CHF falls despite soft Swiss CPI print – Danske Bank

April’s downside surprise in Swiss inflation has reinforced expectations of a June rate cut by the SNB, with markets now entertaining the possibility of a return to negative interest rates as the strong franc and global uncertainties weigh on growth and price stability, Danske Bank's FX analysts rep