Swiss National Bank chairman can't rule out more rate cuts: paper

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Swiss National Bank chairman can't rule out more rate cuts: paper
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Swiss National Bank Chairman Thomas Jordan cannot exclude more interest rate cut...

), have passed on the cost of negative rates to rich customers, triggering an outcry from the Swiss Bankers Association, which said ultra-low rates damage the country’s pension system.

The SNB last week kept its rates locked down at minus 0.75%, the same level it has for nearly five years, and indicated negative rates would remain in place for the foreseeable future. [nL8N28M1ST] In the interview, Jordan said it was difficult to predict how long the measure would remain in force.He added that negative rates were needed to prevent a rapid appreciation in the Swiss franc EURCHF=which would damage the country’s export-reliant economy.

“Imagine what would happen if we raised interest rates, for example to zero. That would mean the franc would strongly appreciate,” Jordan told the newspaper. “Inflation would turn negative, economic growth would be significantly slowed. That would benefit neither savers nor the pension funds.”

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