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Swiss central bank keeps target rate and sight deposit charge unchanged

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The Swiss National Bank (SNB) said on Thursday it will keep charging some cash depositors 0.75 per cent to park money at the central bank, and said it will remain active in currency markets to keep the franc down.

[BERNE] The Swiss National Bank (SNB) said on Thursday it will keep charging some cash depositors 0.75 per cent to park money at the central bank, and said it will remain active in currency markets to keep the franc down.

In its quarterly policy meeting Switzerland's central bank kept its target range for the three-month Libor at -1.25 to -0.25 per cent, as analysts polled by Reuters had expected.

"The SNB takes account of the exchange rate situation, and its impact on inflation and economic developments, in formulating its monetary policy," the central bank said in a statement.

"It will therefore remain active in the foreign exchange market, as necessary, in order to influence monetary conditions."

sentifi.com

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The SNB abruptly abandoned its 1.20 francs per euro cap on Jan 15, sending the currency soaring and raising concerns that the export-reliant economy could sink into deflation.

It has also introduced negative interest rates and charges on major cash deposits held with the central bank.

REUTERS

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