Switzerland’s Likely Rate Cut to Zero Threatens to Test Banks

Switzerland’s Likely Rate Cut to Zero Threatens to Test Banks

The Swiss National Bank’s next cut in borrowing costs may be about to cause a headache for banks, if officials end up experimenting with their first-ever interest rate of zero.

Finance Professor Martin Janssen Urges SNB to Hike Rates

A Swiss National Bank rate decision is due next week. Many economists expect the key rate to be cut, and do not even rule out a negative rate later this year. Emeritus finance professor Martin Janssen regards such a move as wrong. Instead, he believes a rate increase is necessary, as he explains in his guest commentary on finews.com.