Analysis: Despite Trump's tariffs, the central bank is unlikely to lower interest rates below zero

According to Golden Finance, Karsten Junius, a sustainable analyst at asset management company J. Safra Sarasin, said that despite the severe impact of high US trade tariffs on the Swiss economy, the Swiss central bank is unlikely to lower interest rates below zero. The Swiss National Bank lowered its benchmark interest rate to zero in June this year, due to strong market demand for the Swiss franc and offsetting unfavorable factors faced by the country's main export products. President Trump has stated that he will unexpectedly impose a high 39% tariff on goods imported from Switzerland, adding to these unfavorable factors. Despite being hit by tariffs, the Swiss National Bank is likely unwilling to lower interest rates to negative values. Switzerland's inflation has exceeded expectations, and the zero interest rate policy has stimulated economic activity. At the same time, further interest rate cuts will add fuel to the US accusations of Swiss central bank intervention in exchange rates.