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.
Popular Stories
More
Demographics
Flat-hunting in Switzerland’s cheapest and most expensive municipalities
Train vs plane: would you take a direct train between London and Geneva?
Eurostar is planning to run direct trains from Britain to Germany and Switzerland from the early 2030s. Would you favour the train over the plane? If not, why not?
Swiss petition against US F-35 fighter jets gathers 42,000 signatures
This content was published on
A petition by the "Stop-F35 Alliance" urging the Swiss government to immediately halt the purchase of new US fighter jets has gathered 42,500 signatures.
Swiss House of Representatives backs online Schengen visa system
This content was published on
In future, Schengen visa applications should be made via a European Union online platform. On Tuesday, Switzerland's House of Representatives adopted a revision of Swiss legislation on this issue.
UBS study: Switzerland is still the richest country in the world
This content was published on
Average per-capita wealth in Switzerland rose last year to $687,000 (CHF561,000), the UBS Global Wealth Report said on Wednesday.
UBS and Pictet report data leak after cyber attack on provider Chain IQ
This content was published on
Swiss banks UBS and Pictet on Wednesday confirmed they had suffered a data leak due to a cyber attack on their subcontractor Chain IQ in Switzerland.
Iran will respond firmly if US gets directly involved in Israeli strikes, says UN ambassador
This content was published on
Iran says it will respond firmly to the United States if it becomes directly involved in Israel's military campaign, the Iranian ambassador to the United Nations in Geneva said on Wednesday.
Swiss politicians concerned by cut to Lausanne-Paris TGV services
This content was published on
The Vaud cantonal parliament wants to maintain six direct daily TGV high-speed train services between Lausanne and Paris.
This content was published on
Switzerland and Norway have signed a bilateral agreement for the future storage of carbon dioxide (CO2) under the North Sea.
Switzerland must better protect whistleblowers, says OECD
This content was published on
Switzerland must step up its anti-corruption efforts and provide better protection for whistleblowers while increasing fines for guilty firms, an OECD anti-bribery group says.
Art Basel 2025 registers numerous million-dollar sales on first day
This content was published on
Galleries at the prestigious Art Basel fair in Switzerland have registered numerous million-dollar sales on the first preview day on June 17.
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.