Analyst: Switzerland is expected to maintain zero Interest Rate before the end of the year, and the threshold for restarting negative interest rates is relatively high.

Jin10 data, August 29 - Institutional analyst Robert Howard stated that as long as the Euro/Swiss Franc remains above 0.92, the Swiss Central Bank seems likely to maintain the policy interest rate at zero in September and December. Swiss Central Bank Vice President Martin said this week that compared to previously lowering the interest rate from positive values, the threshold for the Central Bank to push rates back into negative territory in the future will be higher. Martin also pointed out that the recent weakness of the dollar against the Swiss Franc is unlikely to have a significant impact on Swiss inflation (the dollar/Swiss Franc fell to a 10-year low in early July). Swiss inflation data for August will be released next Thursday (September 4), three weeks ahead of the Swiss Central Bank’s next interest rate decision. The Swiss CPI in July rose slightly year-on-year to 0.2%, higher than June’s 0.1% and May’s -0.1%. The Euro/Swiss Franc has not touched the 0.92 mark downwards since January 2015, and the last time it approached this key support level was in April.