Swiss central bank maintains expansionary monetary policy stanceChristian Fernsby ▼ | March 19, 2020
Switzerland's central bank left its interest rates unchanged and raised its negative interest exemption threshold, as coronavirus is posing exceptionally large challenges to the economy.
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Topics: Swiss bank
Economists had also expected the rate to remain unchanged as it had already reached negative levels.
The bank rephrased its view on the currency, saying the Swiss franc is "even more" highly valued.
Negative interest and interventions are necessary to reduce the attractiveness of Swiss franc investments and thus counteract the upward pressure on the currency.
The SNB will take additional steps to ensure liquidity as necessary. Along with other major central banks, the SNB also decided to provide liquidity as part of the extended swap arrangements, particularly in U.S. dollars.
The central bank said it is raising the exemption threshold as of April 1, 2020, thus reducing the negative interest burden on the banking system. The threshold factor will increase to 30 from 25. ■