SNB Chairman says current situation with low inflation and 0% interest rates is not easy for monetary policy, according to SRF

• Have noted many times are prepared to go into negative interest rates; but hurdles to go negative are higher.
• Sees no alternative to US Treasuries for central bank reserves.
• Expects swiss inflation to climb in coming months; sees monetary conditions in Switzerland as appropriate.

The SNB Chairman's comments indicate a complex monetary policy landscape, suggesting that while they are open to the possibility of negative interest rates, the threshold has become more significant. His anticipation of rising inflation hints at a potential shift in the interest rate outlook, which could affect broader market dynamics, especially in fixed income and currencies. Overall, these remarks convey a firm yet cautious stance on monetary conditions in Switzerland, influencing market expectations for future SNB actions.