SNB chief, Thomas Jordan, comments in an interview with Blick
- But if there is a need to act, the SNB will deepen further negative rates
- If the SNB tightens policy, it would lead to a strong appreciation of the franc
- Inflation will turn negative and economic growth will slow down significantly as such
Jordan continues to defend the need for negative rates despite mounting criticism faced by the central bank in recent times.
He's not wrong about the franc appreciating if they do tighten policy but after five years, the NIRP experiment isn't exactly what I would say as being successful either.
