Atillio Zanni, a member of the board of the Swiss National Bank, stated that the option of returning to negative interest rates is still on the table, confirming that the central bank has all the necessary tools to deal with economic challenges, even if interest rates stabilize at zero levels.
Zanni's remarks come at a time when speculation about the future course of monetary policy in Switzerland is increasing, amid a relative slowdown in inflation and signs of economic deceleration in the Eurozone.
Zanni confirmed that the Swiss National Bank does not rule out any options from its available tools, including a return to negative interest rates, if economic conditions warrant it, pointing out that a reduction in interest rates could be an effective tool to support financial stability and stimulate economic activity if the Swiss economy faces renewed pressures.
Zanni's comments regarding negative interest rates highlight the flexibility of the Swiss National Bank in managing monetary policy and its willingness to keep all options available amid a changing economic environment. He added that the bank still has room to maneuver, whether through interest rates or other unconventional tools.
In this context, markets confirm that any hint of a return to negative interest rates would have a clear impact on investor trends and the behavior of commercial banks. Zanni's statements also reflect the Swiss bank's commitment to responding swiftly to any changes that may arise in the local or global economic landscape.
These statements come at a time when markets are closely monitoring the positions of major central banks, particularly with the divergence of policies between the U.S. Federal Reserve, the European Central Bank, and the Swiss National Bank, in light of varying inflation and interest rate trajectories.
These comments reopen the discussion about whether central banks may have to revert to accommodative monetary policies in the future, including negative interest rates, as a tool to achieve financial and monetary balance in the face of fluctuations in the global economy.
