Swiss won’t hoard cash despite smaller bills, SNB’s Jordan says

Brought to you by Investec Switzerland.

Swiss National Bank President Thomas Jordan doesn’t expect cash stockpiling even with negative interest rates and a new series of smaller banknotes.

“The size has no impact on the cash hoarding,” he said in a Bloomberg Television on Wednesday in Bern after the central bank unveiled a new banknotes that are smaller than those presently in use. “But we don’t really observe a big hoarding in Switzerland. We have a little bit higher growth rates for cash, but not really a hoarding problem.”

• Could Swiss banks start charging negative interest? (Le News)
• Why the new Swiss bank notes are set to become even more sought after (Le News)

Negative interest rates and a pledge to wage currency market interventions have been the cornerstone of the SNB’s monetary policy for the past 15 months, designed to combat an overvalued currency. The injection of additional monetary stimulus within the euro area has repeatedly prompted speculation the SNB could further reduce its deposit rate, already at a record low of minus 0.75 percent, to take pressure off the franc.

By Catherine Bosley (Bloomberg)

For more stories like this on Switzerland follow us on Facebook and Twitter.