RETURN OF NEGATIVE INTEREST RATES 3/3

Despite a domestic GDP contraction of -0.5% and zero interest rates, the Swiss Franc remains in high demand, driven by global risk-off sentiment and flight to safety. Its status as a global sanctuary is underpinned by exemplary fiscal discipline (40% public debt) and political stability, differentiating it from highly indebted peers. This strength, amplified by strategic disengagement from the US Dollar, necessitates decisive intervention by the SNB to counter further appreciation.