Will the SNB’s key interest rates turn negative again?

Since America started imposing exorbitant tariffs on Swiss products, our prosperity seems to be in jeopardy. The export industry in particular is likely to suffer from massive competitive disadvantages on the American market. Even if the quality of our products is convincing, the significantly higher prices of almost 40 per cent due to the expensive franc and customs duties may cause some US customers to look for alternatives.

The Swiss National Bank could do something to counter the feared slowdown in the Swiss economy: further reduce interest rates and thus reintroduce negative interest rates.

There is currently intense speculation as to whether or not it will do so in its next interest rate round in a week’s time. However, according to Christoph Sax, Chief Investment Officer at VZ VermögensZentrum, there are some good reasons not to.