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SNB: Sight deposit "above threshold" spread is maintained at -50bp

SNB
  • In line with an August update the threshold factor for sight deposits will be lowered from 25 to 22, effective from 1 October.
  • Sight deposits are renumerated at the policy rate up to this threshold (now 1.00%, 25bp lower than previous).
  • Sight deposits above this 22 threshold will now be renumerated at 0.50%, also down 25bp.
  • So the spread between the policy rate and the rate on sight deposits above the threshold remains -50bp with today's decision.
  • This spread was expected to remain at -50bp today.
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  • In line with an August update the threshold factor for sight deposits will be lowered from 25 to 22, effective from 1 October.
  • Sight deposits are renumerated at the policy rate up to this threshold (now 1.00%, 25bp lower than previous).
  • Sight deposits above this 22 threshold will now be renumerated at 0.50%, also down 25bp.
  • So the spread between the policy rate and the rate on sight deposits above the threshold remains -50bp with today's decision.
  • This spread was expected to remain at -50bp today.