ZURICH Feb 5 Swiss National Bank board member
Fritz Zurbruegg expects interest rates to start moving up again
once economic growth recovers, ruling out a move into negative
"We will be moving up as soon as economic fundamentals come
to bear," Zurbruegg told a conference in Zurich. "Once we get
economic growth going we're going to see things normalise."
"This upturn could take a bit longer than some people would
wish," he said, noting that there were still significant output
gaps in large economies. "We do not see imminent inflation
pressures despite very large liquidity in the system."
Zurbruegg added that negative rates were "definitely not on
the cards" in Switzerland even after UBS and Credit
Suisse said in December they would levy temporary fees
and negative interest rates on other banks holding franc
The SNB kept rates at rock-bottom levels at its last
monetary policy meeting in December, stressing its priority is
to prevent the Swiss franc from appreciating after it capped the
safe-haven currency at 1.20 francs per euro in 2011.