SNB keeps rates negative

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The Swiss National Bank is to keep interest rates at their record low of -0.75%.

The bank says it’s looking to ensure price stability and supporting the economy. 

While inflation has been affecting other economies, such as the US and the UK, the rate in Switzerland remains at 1.5%. 

The main concern for the bank is the level of the franc, which it describes as ‘highly valued’. The currency is seen as a safe haven in times of crises.

It has been intervening in the currency markets to keep the franc down – in 2020 it spent CHF 110 bn on foreign currencies. 

The bank’s president, Thomas Jordan, says he believes inflation will reach its peak next year and then decline. 

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