The SNB’s deposit rate has been at -0.75% – one of the lowest rates in the world – for almost five years, part of a trend toward ultra-low rates evident across industrialized economies.
“Our interest rate flexibility is not unlimited, but we have the opportunity to make further decreases,” he said.
With negative interest rates and increased foreign currency investments, the SNB tries to weaken demand for the safe haven Swiss franc and prevent the currency from becoming too strong. However, this complicates life for Swiss businesses, say critics.
Last week, the Swiss Bankers Association called for negative rates to be scrapped, saying they were no longer needed.
Bankers in Europe complain that record-low interest rates are hurting profit margins and offer diminishing economic returns. On Wednesday, Credit Suisse Chief Executive Tidjane Thiam said they are “not helpful to the banking sector” and would have to change.
Jordan also rejects the idea that the public might withdraw their money out of the banks and keep it at home if interest rates fall further.
“The costs and risks associated with storing liquidity are higher than the costs of current negative interest rates,” he said.
Swiss football boss wants crackdown on individual hooligans
This content was published on
The head of the Swiss Football League says he prefers a harsher approach to individual hooligans rather than collective punishment measures affecting all fans.
Amherd: Council of Europe is ‘as urgently needed as ever’
This content was published on
The Swiss government emphasised on Sunday the vital role of the Strasbourg-based Council of Europe, 75 years after it was founded.
Swiss minister: Italy will back Switzerland in EU talks
This content was published on
Bern can count on the backing of Italy as it re-enters talks with the European Union on future relations, Viola Amherd says.
Student protestors at University of Lausanne continue pro-Palestine sit-in
This content was published on
Since Thursday, a hall on campus has been occupied by students calling for a boycott of Israeli academic institutions and a ceasefire in Gaza.
This content was published on
Swiss public broadcasters RTS and SRF are drastically reducing their communications via the social network X (formerly Twitter).
Israel: president of Swiss universities rejects academic boycott
This content was published on
Luciana Vaccaro, president of Swissuniversities, the umbrella group of Swiss universities, is not in favour of an academic boycott of Israeli universities.
You can find an overview of ongoing debates with our journalists here . Please join us!
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.