Latest news with #MartinSchlegel
Nikkei Asia
29-06-2025
- Business
- Nikkei Asia
Hurdles to negative rates 'certainly higher': Swiss central bank chief
The Swiss central bank is prepared to intervene in foreign exchange markets as needed, Chairman Martin Schlegel told Nikkei. (Photo by Takero Minami) TAKERO MINAMI BERLIN -- Switzerland's central bank now faces higher hurdles to reintroducing negative interest rates, its head acknowledged after the bank decided in mid-June to cut its key rate to zero. Stressing the side effects of lower interest rates on depositors and the real estate market in an interview with Nikkei, Swiss National Bank Chairman Martin Schlegel showed caution on further rate cuts -- a reversal from his favoring of them so far.
Bloomberg
21-06-2025
- Business
- Bloomberg
SNB Cut to Negative Would Be Much Bigger Step Than ‘Normal' Reduction, Schlegel Says
Swiss National Bank President Martin Schlegel said cutting interest rates below zero is a more significant move than a reduction above that level, suggesting the central bank may be hesitant to take such a step. 'We are aware that negative rates are a challenge for many stakeholders in the economy,' Schlegel told public broadcaster SRF in a radio interview. 'Negative rates also have negative side effects for savers, bankers, pension funds, and so on — we are very aware of that. If we were to lower rates into negative territory, then the hurdles would certainly be higher than with a 'normal' rate cut in positive territory.'
Reuters
21-06-2025
- Business
- Reuters
SNB's Schlegel still ready to intervene in forex markets despite U.S. list
ZURICH, June 21 (Reuters) - The Swiss National Bank is ready to intervene in foreign currency markets to hit its inflation target, Chairman Martin Schlegel said, despite Switzerland recently being added to a U.S. watch list on currency manipulation. The SNB, which cut its key interest rate to zero on Thursday, uses interest rates to steer inflation to its 0-2% target, Schlegel told broadcaster SRF. "We're also ready to be active on the currency markets," Schlegel said in the interview broadcast on Saturday. The U.S. Treasury this month put Switzerland on a list of countries being monitored for unfair currency and trade practices. Bern is seeking to avoid the 31% trade tariffs Washington has threatened against Switzerland, and Schlegel said the SNB conducts policy in the national interest. "Switzerland and the SNB are not currency manipulators," he said. "When we have intervened in the past, we have done it only to achieve our goal of price stability. Our motivation is not to gain an unfair advantage for Swiss exporters." There had been a "very good" exchange with U.S. officials the last time Switzerland appeared on the list, and there was a good understanding of why Switzerland was active in foreign currency markets, he said. Even if Switzerland did reappear on the list, that would mean further dialogue, Schlegel added. He also backed the government's proposals for stricter rules for UBS (UBSG.S), opens new tab, unveiled earlier this month, which could force the bank to hold $26 billion more in core capital. "This is not a radical solution," said Schlegel. "Everyone has an interest in UBS doing well, that UBS is a strong bank and that UBS is also a bank that is strongly capitalised and well prepared in terms of liquidity."
Yahoo
21-06-2025
- Business
- Yahoo
SNB's Schlegel still ready to intervene in forex markets despite U.S. list
ZURICH (Reuters) -The Swiss National Bank is ready to intervene in foreign currency markets to hit its inflation target, Chairman Martin Schlegel said, despite Switzerland recently being added to a U.S. watch list on currency manipulation. The SNB, which cut its key interest rate to zero on Thursday, uses interest rates to steer inflation to its 0-2% target, Schlegel told broadcaster SRF. "We're also ready to be active on the currency markets," Schlegel said in the interview broadcast on Saturday. The U.S. Treasury this month put Switzerland on a list of countries being monitored for unfair currency and trade practices. Bern is seeking to avoid the 31% trade tariffs Washington has threatened against Switzerland, and Schlegel said the SNB conducts policy in the national interest. "Switzerland and the SNB are not currency manipulators," he said. "When we have intervened in the past, we have done it only to achieve our goal of price stability. Our motivation is not to gain an unfair advantage for Swiss exporters." There had been a "very good" exchange with U.S. officials the last time Switzerland appeared on the list, and there was a good understanding of why Switzerland was active in foreign currency markets, he said. Even if Switzerland did reappear on the list, that would mean further dialogue, Schlegel added. He also backed the government's proposals for stricter rules for UBS, unveiled earlier this month, which could force the bank to hold $26 billion more in core capital. "This is not a radical solution," said Schlegel. "Everyone has an interest in UBS doing well, that UBS is a strong bank and that UBS is also a bank that is strongly capitalised and well prepared in terms of liquidity." Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
19-06-2025
- Business
- Yahoo
SNB President Schlegel on Rate Cut Decision, FX Market
The President of the Swiss National Bank said the strong Swiss franc was one factor influencing the SNB's decision to cut its interest rate to zero. Martin Schlegel also said that Switzerland was ready to intervene in the FX market if necessary. Schlegel spoke with Bloomberg's Bastian Benrath in Zurich.
