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Nationalbank prepared for further interest rate cuts



"Our monetary policy is right": National Bank President Thomas Jordan. (Archive image)

Source: KEYSTONE / ANTHONY ANEX

The Swiss bank notes decides to lower Leitzin's case even further in the negative field. This is the case of the Swiss National Bank (SNB) president, Thomas Jordan, in an interview with the "NZZ on Sunday".

"The phase of low interest rates could be sustained even longer, and even further monetary policy lock-down is necessary in the circumstances ", The 56-year-old note banker explained. "Our game room at Zins is not unlimited, but we have the possibility of further reductions."

Finally, SNB charges the Leitzins unchanged at minus 0.75 percent. With the negative interest rate, the central bank wants to make the Franks attractive to international investors. When it is considered a "safe haven" and it is then demanded in turbulent times.

For those people to steal money from banks and still at large in interest rates, they do not believe Jordan. "The costs and risks of cash preservation are greater than the costs of negative interest we currently have," he softly. Therefore, the SNB expressed the view that even Spielraum said beforehand.

Disputed measures

Whoever used negative sentences for the past four years as a non-mass measure, Jordan did not expect any forecast. "We assume that the present situation is corrected earlier or later. If so, that is difficult to predict. ”Jordan emphasized that interest rates have fallen sharply regardless of monetary policy. The reasons for this are the demographic development and a deeper productivity.

The National Bank looks at the negative and the criticism in the face of the Bankers' Association. To criticize critics who did not fulfill negative sentences for their purpose. In addition, people with low savings and little money in the pension fund would lose while property owners and shares profit, he says.

"Our monetary policy is right for the current economic situation," Jordan said. "We never questioned the side effects. We still have to look at the overall interest of the country and not pursue any individual interests. ”If the National Bank were to apply Leitzin's jet now, a stronger Franks would, according to Jordan, result. "The unemployment rate would rise."

Against the proposal for "helicopter money"

In order to weaken the Franks and support the export-oriented economy, the SNB also seeks a need in the foreign exchange market. Asked whether these interventions in the United States could cause political resistance, Jordan denied: "We are in close contact with the US Treasury to explain our specific situation. Our interventions never count on any weakening of France's most recent other economies. ”

The SNB president even remotely relied on the proposal for a so-called helicopter fee. The idea is therefore aimed at securing the economy, through the direct bank distributed cash gifts to the citizens. "I can't advocate such concepts," said Jordan. "When it comes to a mix of monetary and fiscal policy, it was a game with the fire."

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