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Investing.com -- Martin Schlegel, Chairman of the Swiss National Bank (SNB), announced on Monday that the bank's policy rate could potentially go into negative territory, if deemed necessary. However, he stressed that such a measure would not be implemented without serious consideration.
In an interview with broadcaster SRF (NSE:SRFL), Schlegel stated, "The SNB doesn't like negative interest rates, at the same time we can't rule negative interest rates out." This statement suggests that while the central bank is not eager to adopt negative interest rates, it remains a viable option in their strategic toolkit.
Schlegel also mentioned that the SNB has found negative interest rates to be effective in the past. Despite this, the bank would only resort to this policy if it was deemed "really necessary." This implies a cautious approach by the SNB, indicating that such a step would only be taken under significant economic circumstances.
The SNB Chairman's comments provide insight into the bank's potential strategies for managing the country's monetary policy. While the possibility of negative interest rates is on the table, the central bank is clearly stating that it would not be a decision taken lightly.
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