Official announcement from the Swiss National Bank

SNB Lowers Sight Deposit Threshold to 20, Signals Rate Cuts to 0.25%

Dec 16, 2024, 11:28 AM

The Swiss National Bank (SNB) has made adjustments to its monetary policy by lowering the threshold factor for remunerating sight deposits from 22 to 20, effective from February next year. This change will impact how much interest banks earn for parking cash at the institution. Additionally, a Reuters poll indicates that 23 out of 24 economists expect the SNB to cut its policy rate by 25 basis points in March to 0.25%, with one economist predicting no change. By the end of 2025, 14 economists forecast the policy rate to be at 0.25%, while 10 anticipate it to be at 0%. The SNB's recent policy rate cut by 50 basis points to 0.50% and the removal of language signaling further cuts suggest a potential slowdown in the pace of easing, with the possibility of negative rates if necessary to manage the Swiss Franc's appreciation.