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MNI STATE OF PLAY: SNB Could Tweak Tiers, But Rates On Hold


The Swiss National Bank is likely to leave its key policy rates unchanged at -0.75% on Thursday, although policymakers could tweak the tiering system for sight deposits to aid bank profitability.

SNB governing board member Andrea Maechler said back in June that the central bank is committed to increasing the threshold, “to make sure [banks] pay as much as needed, but as little as possible to make sure the burden on the economy is really as low as possible.”

The SNB could therefore reduce the exemption threshold factor on sight deposits -- which increased from 25 to 30 from April 2020 -- in order to counter a rise in the Swiss Average Rate Overnight (SARON) and help reduce banks’ exposure to negative interest rates.


The emergence of the omicron Covid-19 variant has led to upward pressure on the Swiss Franc, but for now, the SNB has been less active in FX markets than was seen during the first months of 2020, with only limited market interventions.

Chairman Thomas Jordan is likely to continue describing the Swiss franc as “highly valued,” while reiterating that the bank remains willing to intervene in the foreign exchange market as necessary.

The franc currently trades at CHF0.9190, close to the middle of a three-month range.

With board member Fritz Zurbruegg announcing his intention to step down at the end of July, Jordan will face questions from the press about the timing of his departure and the identity of his successor.

MNI London Bureau | +44 20 3983 7894 |
MNI London Bureau | +44 20 3983 7894 |

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