The Swiss National Bank (SNB) has just decided to lower the interest rate from 0.25% to 0% due to low inflation and slow economic growth. This decision reflects the need to stimulate the economy in the current context.
Low interest rates are intended to encourage lending and spending but can harm depositors as they have to pay fees instead of receiving interest. Furthermore, negative interest rates risk leading to financial bubbles as users seek riskier investments to earn profits. This could also create capital outflows, putting pressure on the profitability of banks and the economy.
The SNB has warned that it may consider negative interest rates if the situation does not improve. Therefore, monitoring and adjusting policies flexibly is essential to ensure stability for the Swiss economy in the future.
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