SNB President Jordan: policy will have to normalize eventually; negative rates are indispensable for now given the significant overvaluation of the franc and low global rates
- negative rates are having the desired effect; side effects increase the longer rates stay low
- "In Switzerland, the cost associated with the current negative interest rate is clearly lower than the cost of holding cash. Consequently, demand for cash has not yet risen substantially. So the effective lower bound for interest rates has not yet been reached, but we know that it exists."
- still have room to maneuver on rates if needed
- helicopter money does not fall within SNB's purview
- transaction tax is not a panacea, and could have side effects