SNB's Schlegel: We cannot exclude negative interest rates ...Middle East

Inflation is well inside our target range and over our forecast cycleNot uncomfortable with inflation at the momentBut cannot exclude possibility of negative interest ratesIf we have to do it, we willSwiss franc is traditionally treated as a safe havenTrade conflicts are not beneficial for SwitzerlandReady to intervene in FX market if necessaryAnother currency cap is not something we are discussing

The challenge for the SNB now is to rein in the strength of the franc currency. The inflation picture looks to be well in control but rate cuts are still in consideration in trying to manage the exchange rate.

This article was written by Justin Low at www.forexlive.com.

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