The Swiss National Bank (SNB) is prepared to take decisive action to prevent inflation from falling below its price stability target. This was stated by the Chairman of the bank, Martin Schlegel, who was speaking at an event in Zurich on Tuesday, Reuters reported.
The measures that the bank is ready to implement include intervening in the foreign currency markets and potentially reducing interest rates to below zero. Schlegel acknowledged that these measures, particularly the negative interest rates, are not popular but emphasized that the bank is prepared to take these steps if necessary.
"No one likes these negative interest rates, obviously the Swiss National Bank doesn’t like it," Schlegel said. "But if we have to do it, the negative interest rates, we’re certainly prepared to do it again," he added.
The SNB’s readiness to take such steps underscores its commitment to maintaining price stability in the country. The bank’s willingness to intervene in the foreign currency markets and to cut interest rates even further into negative territory, if required, demonstrates its resolve to counter any threats to its inflation target.
