Could negative interest rates return?

Tuesday, 6 May 2025 06:30

Switzerland could see the return of negative interest rates after the April inflation figures show a rate of zero.

Interest rates are currently 0.25% - which leaves the Swiss National Bank little room for manoeuvre.

Low interest rates are a problem as it fuels property prices and props up companies which should probably close.

Analysts expect rates to be cut to zero at the next bank meeting – and negative rate could be next.

The low interest rates are having little effect on the strength of the franc, which is being driven by global events.

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