Economics
SNB Disregards Critics as Franc Keeps Negative Rates in Play
- Financial sector says low interest rates make life difficult
- Swiss central bank says they’re needed to keep franc in check
The Swiss National Bank (SNB) building in Bern, Switzerland.
Photographer: Stefan Wermuth/BloombergThis article is for subscribers only.
Swiss National Bank interest rates are stuck to the floor and 2019 could see criticism of the policy growing louder: The financial sector hates it and there’s trouble brewing in the real estate market.
After nine years of economic growth and the eradication of deflation risks, the arguments are building for the SNB to call time on the world’s lowest rates. Switzerland’s banks blame them for crimping profits, and insurers are pumping money into property to get better returns, creating a potential bubble.