SNB’s Schlegel says negative rates possible but bar remains high

SNB Chairman Martin Schlegel signaled over the weekend that the central bank remains willing to reintroduce negative interest rates if mid-term price stability were threatened. However, he emphasized that “the bar is high”.

Schlegel also addressed the recent deal to cut U.S. tariffs on Swiss goods to 15% from 39%, describing it as helpful but far from being a “game changer”. The duties only affected roughly 4% of Swiss exports.

He said U.S. trade policy remains the biggest source of uncertainty for Swiss companies, noting that exporters will likely pause U.S.-bound shipments until the lower tariff rate is fully implemented.