SNB Hasn't Yet Reached Rock Bottom on Deposit Rate, Jordan Says

The Swiss National Bank could reduce its already negative deposit rate further, its President Thomas Jordan said.

The rate can be “lower than it is where we are now,” he said at a business event in Bern when asked how much further it could drop from its current minus 0.75 percent.

In January 2015, the prospect of quantitative easing in the euro area led Switzerland’s central bank to drop its currency ceiling, set in 2011 after investors flocked to assets perceived as safe amid the debt crisis. For the past year the SNB has pursued a twin-pillar policy of a negative deposit rate and a pledge to intervene in currency markets if necessary.

“It’s not just about foreign capital, it’s about having market conditions generally that make the franc less attractive,” Jordan said.