Bloomberg News

SNB Head Jordan Comments on Franc Cap, Negative Interest Rates

April 27, 2012

Swiss central bank president Thomas Jordan comments on whether the SNB should introduce negative interest rates to prevent the franc from appreciating against the euro. He spoke at the SNB annual shareholder meeting in Bern today, responding to a shareholder question.

On negative interest rates:

“We haven’t introduced negative interest rates because the minimum exchange rate has worked very well so far and because it wasn’t necessary.

‘‘The SNB is examining all reasonable measures that could make sense in the current situation. Still, you have to say that there is no magic option, and all the measures have side effects and you cannot get them for free.”

Jordan declined to elaborate on possible further measures.

To contact the reporter on this story: Klaus Wille in Zurich at kwille@bloomberg.net

To contact the editor responsible for this story: Craig Stirling at cstirling1@bloomberg.net


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