Thursday morning the Swiss National Bank announced its quarterly rates decision.
- SNB imposed negative interest rate of -0.25% on sight deposit account balances at the SNB
- The aim of this move is to take the 3-month Libor into negative territory. It is thus expanding the 3-month Libor to
- The Bank reaffirmed its commitment to the minimum exchange rate of CHF 1.20 per EUR
Swiss franc’s tight range trading has been broken against its neighboring Euro. Swiss central bank stays loyal to its pledge of keeping the EUR/CHF rate above the 1.20 level. This news comes just hours after FOMC announcement where the US FED signaled increasing interest rates in April 2015.