SNB’s Schlegel: We cannot exclude negative interest rates

“We cannot exclude negative interest rates,” Swiss National Bank (SNB) Chairman Martin Schlegel told Bloomberg TV at the World Economic Forum (WEF) in Davos.

Additional comments

Inflation is well inside our target range and over our forecast cycle.

Not uncomfortable with inflation at present.

SNB doesn't like negative rates but if we have to do it, we will.

Swiss Franc is traditionally a safe haven; trade conflicts are not beneficial for Switzerland.

We are ready to make currency market interventions if necessary again.

Another currency cap is not something we are discussing.

Market reaction

The Swiss Franc (CHF) pays little heed to these comments as USD/CHF flirts with intraday lows near 0.9050, down 0.19% so far.