Could Swiss Interest Rates Go Negative Again? SNB Vice Chairman Weighs In

The Swiss National Bank (SNB) may cut interest rates again due to moderate economic growth and low inflation, says Vice Chairman Antoine Martin. As inflation remains within target, the SNB has room to maneuver, possibly even taking rates negative, although no decision has been confirmed.

The Swiss National Bank (SNB) may opt for another interest rate cut later this year, hinted Vice Chairman Antoine Martin. Addressing an event by the Swiss Financial Analysts Association in Zurich, Martin highlighted low inflation and moderate economic growth as factors that could steer the SNB toward such a monetary policy decision.

Martin drew attention to previous comments from SNB officials who suggested fluctuations in rates. While there have been three rate reductions since the beginning of the year, Martin remarked that nothing is set in stone. The SNB has expertly managed to keep Swiss inflation within its desired range, facilitating these rate cuts.

While contemplating the potential for negative interest rates, Martin mirrored sentiments recently expressed by SNB Chairman Martin Schlegel. Although the SNB had exited negative rates last year to tackle inflation, current conditions keep this tool available. However, Martin stressed it remains a theoretical scenario, not currently under active consideration.

(With inputs from agencies.)