The Swiss National Bank (BNS) is ready to lower its key rate further in the face of economic uncertainties, its president Martin Schlegel recalled on Tuesday at a conference at the Zero Forum point in Zurich.
No scenario is excluded by the Swiss central bank. “If necessary, we are ready to think about the reintroduction of a zero rate, even a (monetary) policy of negative rate,” said Schlegel.
According to the latter, the greatest risk that the program institute is currently facing the ambient uncertainty on the markets, whose volatility has exploded with the trade war decreed by Washington.
Meeting in June
Uncertainties on global growth, which should also affect Switzerland, have an impact on the franc, a refuge value which has strengthened by almost 9% against the dollar since the start of the year. In this context, Mr. Schlegel recalled that the BNS was willing to intervene if necessary on the foreign exchange market.
The key rate of the BNS is currently at 0.25% and most economists expect it to lower it to 0% when it was announced as monetary policy in mid-June to cope with the slowdown in inflation and the appreciation of the franc.
The Swiss central bank abandoned the negative rate zone in September 2022, when it had noted its key rate of -0.25% to +0.50%.
This article was published automatically. Sources: ATS / AWP
