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Bloomberg
The Swiss National Bank’s introduction of negative interest rates didn’t lead to a “substantial change†in the public’s demand for cash, according to President Thomas Jordan.
Jordan spoke in Bern on Tuesday, just over a week before European Central Bank (ECB) policy makers are expected to boost monetary stimulus, which could add to pressure on the Swiss franc and force the SNB cut its already ultra-low policy rate of -0.75 percent even further.
“Of course there’s this discussion in the context of negative interest rates, but the experience of the last four years has shown that there wasn’t a radical change in demand for banknotes,†Jordan said at an event introducing Switzerland’s new 100 franc ($101) note.
While the use of cash is dwindling in some countries, Jordan said that in Switzerland paying with bills remained popular and that he thought cash would remain in use for a long time.