SNB Lowers Chances of Future Negative Interest Rates
BERN (Reuters) - The Swiss National Bank could still take interest rates into negative territory, Chairman Martin Schlegel, although the likelihood of such a move has reduced after the central bank's latest cut in borrowing costs.
"At the current juncture we cannot exclude negative interests rates in the future," Schlegel told reporters. "Now with these cuts today the likelihood of negative rates has become smaller."
Schlegel, who has previously flagged negative rates as possible move, said the SNB did not like negative rates, a policy it used for seven years until 2022.
Negative rates are a tool to weaken investor demand for the safe haven franc, whose appreciation has weighed on Swiss exporters by making their products more expensive abroad.
The SNB moved interest rates into negative territory from late 2014 to 2022 to limit the franc's appreciation, although the policy was unpopular with banks and savers.
"Nobody likes negative interest rates. Also, the Swiss National Bank does not like negative interest rates," Schlegel said.
(Reporting by John Revill; Editing by Dave Graham)
