From Yahoo Finance: 2025-06-06 05:28:00

Switzerland may return to negative interest rates to combat a rising currency and falling prices, as global trade tensions persist. With Swiss consumer prices declining in May, the Swiss National Bank may cut its benchmark rate below zero, a move not seen since 2022 when Europe’s central banks abandoned negative rates. Traditional policy tools have proven ineffective, as the Swiss franc gains against the dollar, prompting U.S. scrutiny. Meanwhile, Japan and the euro zone are considering large spending packages to avoid negative rates. Tariffs and currency manipulation further complicate central banks’ efforts to stabilize economies.



Read more at Yahoo Finance: Analysis-Why Switzerland’s strong franc could lead it back to negative interest rates