SNB's Zanetti: Negative Interest Rates Are an Option

SNB's Zanetti: Negative interest rates are an option

Comments from the SNB policymaker

Swiss Sight Deposits Soar After SNB Introduced Zero Rate Regime

Sight deposits at the Swiss National Bank rose sharply after its reduction of borrowing costs to zero, as foreign banks moved cash to the institution to escape negative interest paid in the money market.

Swiss National Bank Sight Deposits Rise Amid Zero Rate Policy

Bloomberg reported on June 30 that the Swiss National Bank experienced a sharp rise in sight deposits. Following its decision to slash borrowing costs to zero on June 19. This change led foreign banks to move significant funds into the SNB to avoid negative interest rate charges. Total deposits rose by 18 billion Swiss francs ($23 billion) in just one week. Foreign institutions added 22 billion francs, while domestic banks pulled back 4 billion …