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SNB's Schlegel ready to cut rates 'if required'

BY Reuters | ECONOMIC | 09/25/25 05:06 AM EDT

ZURICH, Sept 25 (Reuters) - The Swiss National Bank is prepared to cut interest rates further if it is necessary, Chairman Martin Schlegel said on Thursday after the central bank held its policy rate at 0%.

"Yes, we are prepared to cut further if it is required," Schlegel told reporters. "But the bar to go negative is higher."

The SNB would take rates negative if inflation fell outside its price stability target of inflation at 0-2% in the medium term, Schlegel said.

"This means we can have negative inflation prints in the short term, but in the medium term we need to achieve price stability," he 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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