NewsBreak: Swiss National Bank Eases Penalty Rate for Banks

NewsBreak: Swiss National Bank Eases Penalty Rate for Banks  | Sep 19, 2019 15:48

NewsBreak: Swiss National Bank Eases Penalty Rate for Banks -- The Swiss National Bank left its key interest rate unchanged Thursday but took steps to reduce the penalty that banks pay on excess reserves, a week after the European Central Bank took similar action to protect euro zone banks against the harmful side-effects of negative rates. The SNB said the volume of excess reserves that will be remunerated at the penalty rate will be reviewed on a monthly basis.

  • "The adjustment raises the exemption threshold for the banking system and reduces negative interest income for the SNB" - statement
  • New regime to come into force from Nov. 1
  • USD/CHF falls to 0.9938 after announcement, from 0.9980 immediately before the news.
  • EUR/CHF falls to 1.0967 from 1.1013 beforehand.
  • The dollar had hit a three-month high against the franc on Wednesday after the Federal Reserve produced a comparatively hawkish outlook for its monetary policy.
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