‘Much too early’ to lift interest rates, says SNB chairman

The continued volatility surrounding the Italian elections and the threat of global trade wars make it far too early for the Swiss National Bank (SNB) to consider raising rock bottom interest rates, says chairman Thomas Jordan. “It’s much too early at this moment,” Jordan told CNNMoney Switzerland. “The situation is still quite fragile regarding [currency] exchange rates. This is the reason that we continue our monetary policy of negative interest rates.” Most analysts expect the three-month Libor band to remain unchanged at between -1.25% and -0.25% for at least the rest of this year. Jordan’s comments on Friday added further fuel to the general forecast that the SNB will bide its time before lifting rates into positive territory. Having briefly peaked at CHF1.20 ($1.22) in April, the Swiss franc-euro exchange rate has since dropped to CHF1.156, largely due to the political turmoil in Italy. A ruling coalition has only been established in the last few days, despite elections ...