SNB's Schlegel on Interest-Rate Decision, Negative Rates

The transcript covers a discussion on the Swiss National Bank's recent rate decision, which involved a larger-than-expected rate cut to stabilize inflation. The conversation explores the implications of this decision on future monetary policy, the appreciation of the Swiss franc, and the potential for negative interest rates. It also touches on the dynamics of the new board and the challenges faced by the Swiss economy in maintaining price stability.

What was the main reason for the SNB's decision to cut the interest rate by 50 basis points?

• To align with economists' expectations

• To decrease the value of the Swiss franc

• To stabilize inflation forecasts

• To increase inflation pressure

How does the recent interest rate cut affect the likelihood of future rate cuts?

• It increases the likelihood of future cuts

• It has no impact on future cuts

• It ensures future cuts will be larger

• It decreases the likelihood of future cuts

What is the SNB's stance on the appreciation of the Swiss franc against the euro?

• They are highly concerned and plan immediate intervention

• They monitor it closely but focus on overall monetary conditions

• They believe it will naturally depreciate soon

• They have decided to ignore it completely

What lesson did the SNB learn from the last period of negative interest rates?

• Negative rates were unpopular but effective

• Negative rates increased the attractiveness of the Swiss franc

• Negative rates were ineffective

• Negative rates had no impact on the economy

What is the SNB's approach to potential future negative interest rates?

• They will wait for other central banks to act first

• They plan to implement them immediately

• They have ruled out negative rates entirely

• They are ready to implement them if necessary

How does the SNB view its mandate in relation to foreign exchange interventions?

• They follow the US's lead on foreign exchange policies

• They ignore foreign exchange interventions completely

• They focus solely on domestic mandates

• They prioritize international mandates over domestic ones

How has the new board member, Petra Tudi, integrated into the SNB's board?

• She is leading the board's decisions

• She has not yet participated in any decisions

• She is struggling to adapt

• She has been well-integrated and is working well with the team