Swiss National Bank prepared to implement negative interest rates

The Swiss National Bank (SNB) has indicated it is prepared to return to negative interest rates if necessary to maintain inflation within its target range of 0% to 2% over the medium term. Petra Tschudin, a member of the SNB governing board, stated in an interview with Finanz und Wirtschaft that while negative rates function differently than positive ones, they do not represent a constraint for the central bank.

Swiss inflation slowed to 0.4% in July, despite global energy price volatility. The SNB has maintained its benchmark interest rate at zero since last year. While previous reports suggested the bank might keep rates at zero until 2027, recent economic data shows Swiss growth in the second quarter exceeded expectations, and wages are projected to rise. The central bank has not provided binding indications regarding its future interest rate path.