Swiss central bank reintroduces negative interest rates, "threshold higher", predicts number of institutions with negative interest rates to decrease from seven to two.

A survey showed that economists have generally given up their predictions that the Swiss National Bank will lower interest rates to negative levels. Currently, only Barclays and Bloomberg Economics are forecasting that the Swiss National Bank will cut its lending rate by 25 basis points to -0.25% at the policy meeting on December 11. Capital Economics predicts that this measure will be implemented in June next year. The views of economists at Goldman Sachs and Templeton Macro Research have changed, and like the other 15 analysts participating in the monthly survey, they now believe that zero interest rates will be the final level. After the Swiss National Bank's benchmark interest rate was lowered to zero in June this year, seven institutions predicted that negative rates would reappear; before the rate decision in September, five institutions also predicted that the central bank would eventually implement negative rates. Swiss National Bank President Martin Schlegel emphasized after the policy meeting on September 11 that the threshold for reintroducing the negative interest rate policy, which was implemented between 2015 and 2022, is very high given the negative impact it had on the financial system. He said, "The threshold for implementing a negative interest rate policy is clearly higher than for regular rate cuts." Analyst Jean D'Albard believes that the foreign exchange market may ultimately force the Swiss National Bank to take action. "The impact of the strengthening Swiss Franc on domestic prices, as well as the implications of higher than expected U.S. tariffs on economic growth, are key risks facing the Swiss National Bank," he pointed out, "if the Swiss Franc continues to strengthen, we expect the Swiss National Bank to cut rates in December."