(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 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% 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.
To contact the reporter on this story: Catherine Bosley in Zurich at cbosley1@bloomberg.net
To contact the editors responsible for this story: Fergal O'Brien at fobrien@bloomberg.net, Jan Dahinten
©2019 Bloomberg L.P.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
