SNB President Martin Schlegel said the bar for reintroducing negative rates remains “high,” acknowledging the policy’s “undesirable side effects” for savers and pension funds. His comments reinforced market expectations that the SNB will hold its policy rate steady well into 2026, with inflation staying positive for a third month in August.
Switzerland faces new headwinds from U.S. tariffs of 39%, which threaten its export-heavy economy and raise risks of further disinflation. Schlegel cautioned that while some firms will be hit hard, the overall economic impact is not yet clear. “Many companies are investing less, which is having a negative impact on the economy,” he told Migros-Magazin.
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