HomeLive CommentsSNB's Zanetti says negative rates on the table if needed

SNB’s Zanetti says negative rates on the table if needed

SNB board member Atillio Zanetti signaled that policymakers are not ruling out a return to negative interest rates if economic conditions warrant it.

“It’s not an obvious step to go into negative rates,” Zanetti said, acknowledging the unconventional nature of such a move, “but I wouldn’t say that we don’t want to do that if that’s necessary.”

He emphasized that while negative rates remain a tool in the SNB’s arsenal, their effectiveness differs from conventional policy. “We are aware that the transmission of monetary policy with negative rates is different than in positive territory.”

 

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