Given the low inflation, which in May stood at a four-year low of -0.1%, and the strength of the Swiss franc, negative interest rates could return in Switzerland. +Get the most important news from Switzerland in your inbox This is according to BAK Economics, which on the other hand considers the risk of a recession to be low. The Basel-based research institute expects the Swiss National Bank (SNB) to cut the key rate by a further 25 basis points to 0.0% next week. In fact, the monetary authorities are likely to refrain from going below zero for the time being. “That would require a more pronounced deterioration of the economy,” explained Claude Maurer, BAK’s chief economist, at a press conference. Other factors, such as a further appreciation of the franc or lower rates in the eurozone, would be needed before the threshold could be crossed again. In principle, however, it is “certainly appropriate” to prepare for longer-term negative interest rates, the expert warned. On the price ...
