'SNB open to negative rates if inflation warrants'

 Swiss National Bank Governing Board Member Petra Tschudin said Friday that the central bank could cut its policy rate below zero if needed to keep medium-term inflation within its 0%-2% target range.

The central bank official noted in an interview with Finanz und Wirtschaft that Swiss consumer inflation is lower than in other countries partly due to differences in household consumption patterns, with households abroad spending a larger share on gasoline and other goods with highly volatile prices. Commenting on the Swiss franc's recent weakness, Tschudin said stronger inflationary pressures abroad, largely driven by rising gasoline and oil prices, have boosted interest-rate expectations and made other currencies more attractive to investors.

Tschudin also cautioned that artificial intelligence (AI) could fuel inflationary pressures in the short to medium term, adding that the central bank is closely monitoring its impact on price developments.

https://breakingthenews.net/Article/SNB-open-to-negative-rates-if-inflation-warrants/66965896