SNB Chairman: We are prepared to introduce negative rates but the hurdle is high

Policy rate is the main tool but there are situations where FX intervention is more suitableNegative interest rates worked in the past but they have side effectsInterest rate differentials are an important driver of the exchange rateThe Swiss franc hasn't moved on these headlines but the pair has recently bounced after hitting the lowest since 2015: This art…… Policy rate is the main tool but there are situations where FX intervention is more suitable Negative interest rates worked in the past but they have side effects Interest rate differentials are an... Policy rate is the main tool but there are situations where FX intervention is more suitable Negative interest rates worked in the past but they have side effects Interest rate differentials are an important driver of the exchange rate The Swiss franc hasn't moved on these headlines but the pair has recently bounced after hitting the lowest since 2015: EURCHF daily For traders, releases like this can quickly shift rate expectations, currency direction, index futures and broad risk sentiment. Watch the next move in the dollar, front-end yields and index futures to see whether the market prices this release as a true surprise or only a passing headline.