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Swiss National Bank to adopt negative interest rate

Move is to hold down value of Swiss franc amid turmoil in global currency markets

Published Fri, Dec 19, 2014 · 09:50 PM
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SWITZERLAND is introducing a negative interest rate on deposits held by lenders at its central bank, moving to hold down the value of the Swiss franc amid turmoil in global currency markets and expectations that deflation is at hand.

The Swiss National Bank said in a statement from Zurich on Thursday that it would begin charging banks 0.25 per cent interest on bank deposits exceeding a certain threshold, effective on Jan 22.

The bank acted as the crisis in Russia and plummeting oil prices have caused a run on emerging market currencies. Switzerland, known for its fiscal rectitud…

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