- Will continue to monitor the situation and adjust policy if necessary
- Negative rates were an important instrument in the past
- We are aware of the undesirable effect of negative interest rates
- The rate cut today serves to counter lower inflationary pressures
- Global outlook subject to high uncertainty (Tschudin)
- Expects Swiss economic growth to slow and be subdued for the rest of 2025 (Tschudin)
- Higher trade tensions has led to deterioration of global economic outlook (Tschudin)
- Trade tensions have led to significant increase in financial market volatility (Martin)
- Interest rate environment in Switzerland has started to weigh on banks’ profitability (Martin)
That’s a light but relatively balanced endorsement of negative rates and that’s arguably the most we’re going to get from the SNB at this point in time. They know that they might be heading in that direction but can’t be too explicit about it just yet. USD/CHF remains near flat on the day at 0.8190 currently.
This article was written by Justin Low at www.forexlive.com.
