The SNB wants to counteract the effect of increasing the minimum reserve requirements. The factor for the limit that is used to calculate interest for current account holders who are required to maintain minimum reserves will be reduced again.
The Swiss National Bank (SNB) is once again adjusting the rules for paying interest on sight deposits. As of February 1, 2025, the factor for the limit for interest on sight deposits of current account holders who are required to maintain minimum reserves will fall from the current 22 to 20.
The last adjustment was made at the beginning of October with a factor reduction from previously 25. However, the renewed reduction will not change the monetary policy orientation, the SNB emphasized in a statement on Monday.
The monetary authorities point to the increase in the minimum reserve requirement implemented on July 1, 2024. The factor reduction counteracts the increase in limits, as it was said.
“The factor reduction thus ensures that monetary policy continues to be effectively implemented and supports an active money market,” writes the National Bank.
The sight deposits up to the limit will earn interest at the SNB base rate, which has been 0.50 percent since the big cut last week. Amounts in excess of this will no longer bear interest.
Swiss
