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SNB Threat of Negative Rates Seen Unlikely on House Boom

Swiss National Bank President President Thomas Jordan is unlikely to make good on his threat of negative interest rates for now so as not to fuel the booming housing market, economists said.

Jordan said last month a shift in its ceiling on the franc or a negative rate on commercial banks’ excess deposits was in the SNB’s toolkit. That comment, made the same month that European Central Bank President Mario Draghi dangled a similar threat, prompted the franc to drop to below 1.26 per euro, the lowest in two years.