The Governor of the Swiss National Bank, Martin Schlegel, stated in an interview yesterday, Monday, that the central bank does not prefer negative interest rates, but this possibility cannot be completely ruled out.
Additionally, the Swiss National Bank Governor added the following points:
The Swiss National Bank does not like negative interest rates, and at the same time, we cannot rule out negative interest rates. This is not something that the Swiss National Bank would take lightly. It is possible for inflation rates in Switzerland to reach negative levels, but this is not a problem. The Swiss National Bank focuses on maintaining price stability in the medium term within the target range of 0-2%. In recent weeks, the central bank governor has repeatedly pointed to the possibility of interest rates reaching negative levels, especially with Swiss inflation declining to 0.6% in December, raising concerns about deflation.
