Ex-SNB’s Jordan Sees Subzero Rates as Best Avoided Unless Needed

Former Swiss National Bank chief Thomas Jordan said officials shouldn’t rule out a return to negative interest rates, even though the measure is best avoided.

The ex-president of the central bank, who left office a year ago after previously overseeing cuts in borrowing costs to the world’s lowest level, told public broadcaster SRF that such a policy was an “economic necessity” between 2015 and 2022.

More generally though, “whenever possible, you avoid introducing negative rates,” he said. “But there are of course constellations where you need to use them.”

The SNB has reduced its benchmark to zero, meaning that it ...