The Swiss National Bank (SNB) has reiterated its dedication to maintaining negative interest rates, a move that continues to exert pressure on the Swiss franc. This decision underscores the SNB’s persistent efforts to counter deflationary forces and ensure price stability within the Swiss economy.

At its latest policy meeting, the SNB confirmed its target range for the three-month Libor at -1.25% to -0.25%, and the interest rate on sight deposits held with the SNB remains at -0.75%. These measures are designed to make holding Swiss francs less attractive, thereby weakening the currency.

The SNB’s monetary policy stance is primarily driven by concerns about the strength of the franc, which can negatively impact Swiss exports and tourism. A weaker franc helps to make Swiss goods and services more competitive in international markets.

Despite some signs of improvement in the global economy, the SNB remains cautious about the outlook for inflation. The central bank has stated that it will continue to monitor the situation closely and is prepared to intervene in the foreign exchange market if necessary to prevent excessive appreciation of the Swiss franc.

Economists generally expect the SNB to maintain its current policy stance for the foreseeable future, given the persistent challenges facing the Swiss economy. The negative interest rate policy is seen as a key tool in the SNB’s efforts to achieve its inflation target and support sustainable economic growth.