SNB chairman aware of 'undesirable' effects of negative rates

ReutersJun 19, 2025 8:00 AM

ZURICH, June 19 (Reuters) - The Swiss National Bank is aware of the "undesirable side effects" of negative interest rates, Chairman Martin Schlegel said on Thursday, although the measure had been an important instrument when deployed in the past.

"Between 2015 and 2022 negative interest was an important instrument for maintaining price stability in Switzerland in an exceptional phase," Schlegel said in a speech after the SNB's latest interest rate decision.

"However, we are also aware that negative interest can have undesirable side-effects and presents challenges for many economic agents," he added, after the central bank reduced its policy rate to 0%.

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