December 14, 2019 / 10:49 AM / 8 months ago

Swiss National Bank could cut rates more in a pinch -Jordan

ZURICH, Dec 14 (Reuters) - The Swiss National Bank could cut its main interest rate even further into negative territory if it had to, SNB Chairman Thomas Jordan said in a radio interview, reiterating it was too early to consider tightening its ultra-loose policy.

The SNB always weighs the risks and benefits of adjusting policy, Jordan told Swiss broadcaster SRF in the interview recorded on Friday and aired on Saturday.

“At the moment it is very clear that the current monetary policy is the right one. We could certainly cut interest rates again if absolutely necessary, but that is not something we aim to do for now,” he said.

He would not be specific on where the bottom might be for the SNB’s main policy rate, which it held at -0.75% at its quarterly policy review on Thursday.

But at some stage pushing rates much lower could prompt hoarding of cash, which would undermine policy objectives, he said.

Jordan has had to defend negative rates amid increasingly vocal criticism from banks and savers, saying they remain essential to keep the safe-haven Swiss franc from going through the roof and damaging the export-led Swiss economy. (Reporting by Michael Shields Editing by Francois Murphy)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below