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Swiss National Bank can cut rates further next year, chairman says

BY Reuters | ECONOMIC | 04:43 AM EST

BERN, Dec 12 (Reuters) - The Swiss National Bank still has the ability to reduce interest rates lower than the current 0.5% level, Chairman Martin Schlegel said on Thursday.

"We will meet in March ... and we can then decide if further adjustments are necessary," Schlegel told reporters after the central bank cut its policy rate by 50 basis points.

"This means that we still have room for the next stage," Schlegel added. (Reporting by John Revill Editing by Dave Graham)

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In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

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