VIENNA (Reuters) – The Swiss National Bank (SNB) may need to take its interest rates further into negative territory, its chairman Thomas Jordan said in an interview with the weekly NZZ am Sonntag.
Investors traditionally buy the Swiss franc as a safe haven, but the resulting increase in value against other currencies makes life hard for Swiss businesses. In July and August, the Swiss franc hit its highest level against the euro in two years.
Interest - Rates - Currency - Investments - Bank
With negative interest rates and increased foreign currency investments, the central bank tries to dampen demand for the franc and prevent the currency from becoming too strong.
In September, it left its main policy rate at -0.75%, one of the lowest rates in the world, and said it expects to stick to its ultra-loose monetary stance for the long haul.
Phase - Interest - Rates
“The phase of low interest rates could last even longer, and a...
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