Swiss National Bank

Swiss National Bank Keeps Negative 0.75% Interest Rate

March 15, 2018

In mid-January 2015, the Swiss National Bank discontinued its intervention-enforced minimum exchange rate target of 1.2000 per euro but at the same time lowered the sight deposit target by a half percentage point to -0.75% and the 3-month Swiss Libor target range to -1.25% to -0.25% (from -0.75% to +0.25%). Equally important, monetary officials promised […] More

Swiss National Bank

December 14, 2017

Swiss monetary policy gets reviewed quarterly, which is less frequent than the practice at many other central banks. The current interest rate settings of a negative 0.75% sight deposit rate within a 3-month Libor corridor of minus 1.25% to minus 0.25% dates back to January 2015 when SNB authorities ended an automatic asymmetric Swiss franc […] More

Swiss National Bank

September 14, 2017

After the September quarterly review of monetary policy, Swiss central bank authorities did not change their policy stance, slightly boosted projected inflation, cut the 2017 growth forecast to under 1% from 1.5%, and reiterated a commitment to a sub-zero interest rate and occasional foreign exchange intervention as needed to keep upward pressure on the franc […] More

Swiss National Bank Quarterly Policy Review

March 16, 2017

The current Swiss monetary policy stance dates back to January 2015 when a number changes were introduced. A previous cap on franc appreciation at 1.2000 per euro was abandoned, but a continuing role for discretionary, rather than automatic, forex intervention was retained to counter excessive appreciation as needed. By some objective criteria like purchasing power […] More

Swiss National Bank

December 15, 2016

The Swiss National Bank reported result of its quarterly policy review today, which ended without a change in the interest rate of -0.75% on overnight sight deposits or the pledge to intervene as needed to counter what central bank officials to be a still significantly overvalued franc. Since January 2015, intervention has been done on […] More

Broad Financial Market Adjustments Intensify in Wake of FOMC Meeting

December 15, 2016

The dollar gained overnight by another 2.0% against the Australian dollar, 1.5% versus the euro, 1.6% vis-a-vis the kiwi, 1.2% relative to the yen, 0.9% against sterling, and 0.6% versus the yuan. Key levels are being approached such as parity with the euro, 120 yen, and 7 renminbi. Throughout the 8-year Obama stewardship, Republicans fought […] More

Quarterly Swiss Monetary Policy Review

September 15, 2016

Officials at the Swiss National Bank left their policy interest rate unchanged and retained a supportive readiness to intervene as needed to counter excessive strength in the franc. The sight deposit rate stays at -0.75%, and the target range for three-month Swiss Libor is centered on that level and a percentage point wide. The exchange […] More

Unchanged Swiss Monetary Policy but Higher Near-Term Inflation after Quarterly Policy Review

June 16, 2016

The Swiss sight deposit rate target was left at -0.75% and the 3-month Libor target corridor was kept at -1.25% to -0.25%.  Swiss National Bank authorities also said they”will remain active in the foreign exchange market, as necessary.”  Explaining these decisions in a released statement, officials go on to say The negative interest rate and the […] More

Swiss National Bank

March 17, 2016

The latest quarterly review of Swiss monetary policy revises projected growth and inflation lower in both 2016 and 2017 but left policy settings unchanged.  Fourteen months have passed since a 1.2 franc per euro asymmetric barrier to franc appreciation was discontinued, but officials promise to remain “active” in the foreign exchange market to counter what it considers […] More

Swiss National Bank

December 10, 2015

Swiss monetary policy remains unchanged after the final quarterly review of 2015.  The year began with an unscheduled mid-January abandonment of a 1.20 franc per euro ceiling rate and rate reductions to a 3-month Libor range of minus 1.25% to minus 0.25% and a sight deposit rate of –0.75%.  SNB President released a statement today […] More