Report: The degree of Swiss inflation weakness is not yet sufficient to support the implementation of negative interest rates.

In a report, Monex's Barry van der Laan stated that the inflation rate in Switzerland in January reinforced the Swiss National Bank's stance that the threshold for implementing negative interest rates remains high. The year-on-year inflation rate in January was 0.1%, unchanged from December. He said that the data reflects the familiar macroeconomic picture in Switzerland: inflation is positive but low, and the main risk is not domestic economic overheating, but the strength of the Swiss franc dragging down the inflation path. The economist said, "Negative interest rates are still a backup tool with a very high threshold for activation, and the most reliable primary measure to address new emerging pressures of inflation decline is still through foreign exchange channels." He stated that negative interest rates may only be used if the medium-term inflation outlook deteriorates significantly from the expected inflation data released on Friday.