Swiss Haven’t Flocked to Cash on Negative Rate, Jordan Says
- Jordan says ECB policy actions of ‘utmost interest’ to SNB
- Says Swiss franc still ‘considerably overvalued’ versus euro
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Negative interest rates in Switzerland haven’t yet caused cash hoarding, Swiss National Bank President Thomas Jordan said.
“The fear that the introduction of negative interest will precipitate a flight to cash has thus far proved unfounded,” he said in Frankfurt on Tuesday. While the banking system is working well with negative rates, they are a bigger challenge for insurers, according to Jordan.