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

Temps set to fall today

Switzerland is set to break free of its record-breaking heatwave today, as a cooler front moves in after Saturday's 39°C in Basel — a national June record broken three days running.
Calls to end block on air-conditioning

A Green-Liberal MP is pushing to break its taboo around air conditioning in hospitals and care homes, as the current heatwave strains nursing staff.
Divonne chateau hit by fire, again

The Chateau in the French town of Divonne les Bains has been ravaged by fire - again.
Fire bar will never re-open

Six months after the New Year's fire that killed 41 people at the Constellation bar in Crans-Montana, Valais cantonal president Christophe Darbellay says the site will never reopen as a bar.
Lausanne Pride draws thousands

Around 20,000 marched through Lausanne on Saturday for the Pride parade, the first Pride event in the city for 20 years.
Police use drones to broadcast warnings

Police in Marin, canton Neuchâtel, used drones to warn residents to stay indoors yesterday afternoon, after a hydrochloric-acid leak at an EM Microelectronics plant.