Latest news with #MartinSchlegel
Bloomberg
2 days ago
- Business
- Bloomberg
SNB Cut to Negative Would Be Much Bigger Step Than ‘Normal' Reduction, Schlegel Says
Swiss National Bank President Martin Schlegel said cutting interest rates below zero is a more significant move than a reduction above that level, suggesting the central bank may be hesitant to take such a step. 'We are aware that negative rates are a challenge for many stakeholders in the economy,' Schlegel told public broadcaster SRF in a radio interview. 'Negative rates also have negative side effects for savers, bankers, pension funds, and so on — we are very aware of that. If we were to lower rates into negative territory, then the hurdles would certainly be higher than with a 'normal' rate cut in positive territory.'
Reuters
2 days ago
- Business
- Reuters
SNB's Schlegel still ready to intervene in forex markets despite U.S. list
ZURICH, June 21 (Reuters) - The Swiss National Bank is ready to intervene in foreign currency markets to hit its inflation target, Chairman Martin Schlegel said, despite Switzerland recently being added to a U.S. watch list on currency manipulation. The SNB, which cut its key interest rate to zero on Thursday, uses interest rates to steer inflation to its 0-2% target, Schlegel told broadcaster SRF. "We're also ready to be active on the currency markets," Schlegel said in the interview broadcast on Saturday. The U.S. Treasury this month put Switzerland on a list of countries being monitored for unfair currency and trade practices. Bern is seeking to avoid the 31% trade tariffs Washington has threatened against Switzerland, and Schlegel said the SNB conducts policy in the national interest. "Switzerland and the SNB are not currency manipulators," he said. "When we have intervened in the past, we have done it only to achieve our goal of price stability. Our motivation is not to gain an unfair advantage for Swiss exporters." There had been a "very good" exchange with U.S. officials the last time Switzerland appeared on the list, and there was a good understanding of why Switzerland was active in foreign currency markets, he said. Even if Switzerland did reappear on the list, that would mean further dialogue, Schlegel added. He also backed the government's proposals for stricter rules for UBS (UBSG.S), opens new tab, unveiled earlier this month, which could force the bank to hold $26 billion more in core capital. "This is not a radical solution," said Schlegel. "Everyone has an interest in UBS doing well, that UBS is a strong bank and that UBS is also a bank that is strongly capitalised and well prepared in terms of liquidity."
Yahoo
2 days ago
- Business
- Yahoo
SNB's Schlegel still ready to intervene in forex markets despite U.S. list
ZURICH (Reuters) -The Swiss National Bank is ready to intervene in foreign currency markets to hit its inflation target, Chairman Martin Schlegel said, despite Switzerland recently being added to a U.S. watch list on currency manipulation. The SNB, which cut its key interest rate to zero on Thursday, uses interest rates to steer inflation to its 0-2% target, Schlegel told broadcaster SRF. "We're also ready to be active on the currency markets," Schlegel said in the interview broadcast on Saturday. The U.S. Treasury this month put Switzerland on a list of countries being monitored for unfair currency and trade practices. Bern is seeking to avoid the 31% trade tariffs Washington has threatened against Switzerland, and Schlegel said the SNB conducts policy in the national interest. "Switzerland and the SNB are not currency manipulators," he said. "When we have intervened in the past, we have done it only to achieve our goal of price stability. Our motivation is not to gain an unfair advantage for Swiss exporters." There had been a "very good" exchange with U.S. officials the last time Switzerland appeared on the list, and there was a good understanding of why Switzerland was active in foreign currency markets, he said. Even if Switzerland did reappear on the list, that would mean further dialogue, Schlegel added. He also backed the government's proposals for stricter rules for UBS, unveiled earlier this month, which could force the bank to hold $26 billion more in core capital. "This is not a radical solution," said Schlegel. "Everyone has an interest in UBS doing well, that UBS is a strong bank and that UBS is also a bank that is strongly capitalised and well prepared in terms of liquidity." Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
4 days ago
- Business
- Yahoo
SNB President Schlegel on Rate Cut Decision, FX Market
The President of the Swiss National Bank said the strong Swiss franc was one factor influencing the SNB's decision to cut its interest rate to zero. Martin Schlegel also said that Switzerland was ready to intervene in the FX market if necessary. Schlegel spoke with Bloomberg's Bastian Benrath in Zurich.
Express Tribune
4 days ago
- Business
- Express Tribune
Swiss National Bank slashes interest rate to 0% as inflation turns negative
Listen to article The Swiss National Bank (SNB) reduced its key interest rate to 0% on Thursday, citing a decline in inflation, pressure from a stronger Swiss franc, and uncertainty fuelled by US trade policies. This marked the sixth consecutive rate cut since March 2024, bringing the benchmark down from 0.25%. The move comes after inflation in Switzerland turned negative in May for the first time in four years, falling outside the SNB's 0–2% target range. Did you know? Switzerland just cut its interest rate to 0%. With inflation turning negative and the franc strengthening, the SNB is moving closer to negative territory again. Next meet in September again — Nikhil Oswal 🇮🇳 (@MrFinterest) June 19, 2025 The SNB said its decision aims to 'counter the lower inflationary pressure' observed over the last quarter. The central bank also acknowledged it may resume negative interest rates — a policy last employed between 2014 and 2022 — if economic conditions worsen further. SNB Chairman Martin Schlegel noted that negative rates would not be adopted lightly due to their impact on banks, pension funds, and savers. He added that future policy decisions would depend on developments in the global economy, with the next review expected in September. Analysts said the move was driven by the franc's appreciation, which has gained roughly 11% against the U.S. dollar in 2025, lowering the cost of imports and thus inflation. Economists warned that continued currency strength could undermine exporters and weigh on growth. The SNB also flagged global economic risks, particularly from rising trade tensions following sweeping U.S. tariffs introduced by President Donald Trump earlier this year. While the SNB reiterated its readiness to intervene in foreign exchange markets if needed, it also remains wary of being labelled a currency manipulator. The rate cut places the SNB among several global central banks easing monetary policy amid weakening growth. Norway's central bank also made its first rate cut in five years on Thursday, while the European Central Bank lowered rates earlier in June.
