Swiss National Bank President Martin Schlegel said the bar is very high for reintroducing negative interest rates, given their harmful effects on savers and pension funds.
- Speaking to Migros-Magazin, he noted that with the policy rate now at zero, officials remain cautious about further easing.
- Schlegel stressed that negative rates would only be considered under exceptional circumstances, as the bank monitors the impact of US tariffs and sluggish domestic inflation.
The SNB cut rates to zero in June, following a cycle of reductions that began in March 2024. Markets expect policy to remain steady well into 2026, with inflation still slightly positive and broadly in line with the central bank’s forecasts. Schlegel also defended the pace of earlier cuts, saying decisive action helped avoid sharper measures later, but conceded that it leaves the SNB with less scope to offset Trump’s tariff shock.
