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

Swiss Post announce job cuts

Swiss Post will eliminate up to 110 positions in 2027, blaming shrinking letter volumes and fewer over-the-counter transactions
Autumn arrives in Switzerland

The heatwave that has gripped Switzerland since May finally breaks tomorrow
Driver warning in Vaud

Drivers in western Vaud face four nights of disruption on the A1 next week.
Mixed results in school classrooms

Swiss 15-year-olds still rank among the world's best in maths and science, but their performance in reading and maths is sliding
Good news for household bills

Swiss households will pay a little less for electricity next year
Fuel reserves now in use

Switzerland is dipping into its emergency fuel reserves for the first time this year to keep petrol and diesel flowing