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SNB Worries About Threats Posed by World’s Lowest Interest Rate
Swiss National Bank policy makers watching the effects of negative interest rates on the economy are worrying about the real-estate bubble that their policy is helping to foster. Aware that any shift in their sub-zero stance could unsettle currency markets, officials are likely instead to highlight the availability of regulatory tools to cool the property market at their decision on Thursday. While they could stop short of recommending a reactivation of the bank-capital buffer suspended early in the pandemic, policy makers may at least reiterate Vice President Fritz Zurbruegg’s stern warning this month that ... (full story)