SNB Pledges to Cut Rates Below Zero If Inflation Woes Persist

The Swiss National Bank (SNB) would be prepared to introduce negative borrowing costs if necessary to keep consumer prices within its target range, according to SNB policymaker Petra Tschudin. The SNB aims to hold inflation between 0% and 2% in the medium term.

Tschudin stated that if it becomes necessary to lower interest rates below zero, 'we'll do so.' This means that the SNB would be willing to go below its current benchmark rate of -0.75%, which is already a negative rate.