The Swiss National Bank Kept Its Key Rate At -0.75%
The national Bank of Switzerland decided to keep the key rate at -0.75% against the background of the coronavirus pandemic, the regulator reports.
"The SNB keeps the SNB discount rate and interest on demand deposits in the SNB at -0.75%," the report says.
"The coronavirus pandemic continues to have a strong impact on economic development. Therefore, the Swiss National Bank maintains its expansionary monetary policy. At the same time, it seeks to mitigate the negative impact of the pandemic on economic activity and inflation," the National Banknotes.
"The long-term inflation forecast has not changed. However, the forecast for the current year remains negative (-0.6%). The inflation rate is likely to become positive again in 2021 (0.1%) and slightly increase in 2022 (0.2%)," the report also says.
The SNB is keeping the SNB policy rate and interest on sight deposits at the SNB at −0.75%. In view of the fact that the Swiss franc is still highly valued, the SNB remains willing to intervene more strongly in the foreign exchange market, while taking the overall exchange rate situation into consideration. The SNB continues to supply the banking system with generous amounts of liquidity via the SNB COVID-19 refinancing facility (CRF). It is also active on the repo market as needed.