Weekend - SNB's Zurbruegg says negative rates are still required to prevent a rising CHF
The Swiss National Bank's Vice President Fritz Zurbruegg was speaking with Sonntagszeitung in an interview.
- at the moment we need the negative interest rates due to the situation globally
- If we were to hike interest rates now, the franc would appreciation markedly, economic growth would slow and joblessness would increase
- pickup in inflation in Switzerland is temporary, in the medium term we expect it to stay low
The Swiss National Bank has set its deposit rate at -0.75.%. The Bank has also not been shy to intervene in the currency if necessary. The next monetary policy meeting is September 23, expectations are of no change to current policy.