Short-term interest rates in many countries in Europe and around the world remain below zero. And even some long-term market interest rates have become negative. The Swiss Finance Institute has produced a Public Discussion Note to show how the negative interest rate environment evolved, to explain
the positive and negative consequences of the current situation for Switzerland, and to discuss possible future developments.

In particular, the publication provides answers to the following questions:

• What is the background to the current environment and what are the economics behind rate changes? 
• Should the SNB bring back positive interest rates? Could it do so even if it wanted? 
• What would be the effects on Switzerland of global economic developments such as a recession, or changes in monetary policies in other regions? 
• What is the potential for new economic instruments that go beyond "classic" monetary policy?

Find out more by reading the complete SFI Public Discussion Note: 
English I French I German I Italian 

View the press release documents here. 

The subject of negative interest rates will be addressed during our evening event on Tuesday, 12 May 2020. We have the honor to welcome Dr. Martin Schlegel, Alternate Member of the Governing Board, Swiss National Bank, as keynote speaker. More information about the event can be found here.