© Reuters. FILE PHOTO: The Swiss National Bank (SNB) building is seen near the Limmat river in Zurich, Switzerland March 23, 2023. REUTERS/Denis Balibouse/File Photo
ZURICH (Reuters) – The Swiss National Bank on Monday said it was adjusting the interest it pays with money commercial banks lodged with the central bank overnight.
Sight deposits which are held to meet the minimum reserve requirements will no longer be remunerated, while it adjusted the level that different interest rates applied.
“The changes have no impact on the current monetary policy stance,” the SNB said. “These adjustments will ensure that monetary policy implementation remains effective and will reduce interest costs for the SNB,” it added.
From Dec. 1, banks will be paid the SNB’s policy rate, currently 1.75%, on deposits equivalent to 25 times their minimum reserve requirements.
Previously they were paid interest for cash held at 28 times the requirement.
Sight deposits held above the bank’s individual threshold will be paid the SNB’s policy rate, minus a discount of 0.5 percentage points.
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