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.

More from Bitesize News

Crans Montana hearings continue

The former Crans-Montana councillor in charge of security between 2017 and 2020 has been questioned for the first time by Valais prosecutors over the Constellation fire on New Year's Day
SBB need financial answers

Federal Railways have backed Transport Minister Albert Rösti's Transport'45 plan but warn that current funding is not enough to deliver its promised upgrades
UNHCR warning

Geneva-based UNHCR warns that shrinking international aid could leave 8.3 million refugees and displaced people without protection this year
New immigration tax

The Upper house has voted to introduce a new incentive tax on immigration, going further than the Federal Council proposed
Fuel most expensive in the country

Fuel prices between Lausanne and Geneva differ by only a few centimes, and Lake Geneva remains the most expensive region in Switzerland to fill up
Twint scam warning

Switzerland has launched a national campaign to help the public spot online scams that exploit the Twint payment app