Credit Suisse: Investors may be starting to digest the prospect of the Swiss Central Bank returning to negative interest rates

On November 1st, Jinshi data reported that analysts at Morgan Stanley said in a report that investors may start digesting expectations of the Swiss Central Bank re-reducing the interest rate to a negative range. If the money market begins to reflect this, there is a risk of a decline in the Swiss franc. However, Morgan Stanley does not believe that the Swiss Central Bank will once again reduce the interest rate to a negative value. Analysts say the advantages of negative interest rates are "debatable." Currently, the pricing of the money market shows that the probability of the interest rate falling to a negative value by December 2025 is small. The Swiss Central Bank's key policy interest rate is currently 1.00%.

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