Swiss National Bank Chairman Thomas Jordan can't bar more loan fee cuts, he said in a meeting distributed on Wednesday, albeit such a stage was not required at this point.
"We can't preclude it," Jordan said disclosed to Swiss paper Blick when asked whether the SNB's short 0.75% loan cost - one of the most reduced on the planet - could be brought down further.
"Yet, we complete an exact money saving advantage investigation and we could never basically cut the financing costs if that brought no advantage. Right now, nonetheless, a further decrease isn't fundamental."
Negative loan fees have gotten progressively dubious in Switzerland. Banks state they rebuff savers and hazard creating resource bubbles.
A few Swiss banks, including UBS (S:UBSG), Credit Suisse (S:CSGN) and Julius Baer (S:BAER), have given the expense of negative rates to rich clients, setting off a clamor from the Swiss Bankers Association, which said ultra-low rates harm the nation's benefits framework.
The SNB a week ago kept its rates secured at short 0.75%, a similar level it has for almost five years, and showed negative rates would stay set up for a long time to come. [nL8N28M1ST]
In the meeting, Jordan said it was hard to anticipate to what extent the measure would stay in power.
"That depends especially on the financial advancement, most importantly in Europe," he said.
He included that negative rates were expected to avert a fast gratefulness in the Swiss franc (EURCHF=) which would harm the nation's fare dependent economy.
"Envision what might occur on the off chance that we raised loan costs, for instance to zero. That would mean the franc would emphatically acknowledge," Jordan told the paper.
"Expansion would turn negative, financial development would be altogether eased back. That would profit neither savers nor the annuity reserves."