Swiss SNB Policy Rate (Q4) 1.00% vs. Exp. 1.00% (Prev. 0.50%)

Rates

• It cannot be ruled out that additional rises in the SNB policy rate will be necessary to ensure price stability over the medium term (prev. “It cannot be ruled out that further increases in the SNB policy rate will be necessary to ensure price stability over the medium term.”)

FX

• To provide appropriate monetary conditions, the SNB is also willing to be active in the foreign exchange market as necessary. (prev. “To provide appropriate monetary conditions, the SNB is also willing to be active in the foreign exchange market as necessary.”)
• No FX classification provided, last update was “Highly Valued” in March. (prev. No FX classification provided, last update was “Highly Valued” in March.)

Economy

• Inflation is likely to remain elevated for the time being (prev. “Inflation will remain elevated for the time being.”)
• The situation on the labour market remained positive (prev. The situation on the labour market has remained positive.”)

Exemption Threshold/Liquidity

• Banks’ sight deposits held at the SNB will be remunerated at the SNB policy rate of 1.0% up to a certain threshold. Sight deposits above this threshold will be remunerated at an interest rate of 0.5%, and thus still at a discount of 0.5 percentage points relative to the SNB policy rate. (prev. “Banks’ sight deposits held at the SNB are remunerated at the SNB policy rate up to a certain threshold. Sight deposits above this threshold are remunerated at an interest rate of zero percent.”)