![]() ![]() To reduce liquidity, the SNB will conduct open market operations (repo and T-bills). However, this system goes hand in hand with the desire to reduce liquidity in the market, which in practice should severely limit the proportion of holdings bearing 0% interest. ![]() At first sight, this may seem surprising, as it could push money market rates to remain below the SNB rate. The aim of this system is, according to the SNB, to encourage money market operations, even in a situation of excess liquidity. It is therefore a reverse tiering system. The threshold is currently set at 28 times the reserve requirement. ![]() From now on, they will be remunerated at the SNB's key interest rate (0.5%) up to a threshold, and the part above this threshold will be remunerated at a rate of 0%. First, it will introduce a two-tier system for the remuneration of sight deposits held by banks and other financial market participants. Interestingly, the SNB also took two other important decisions. ![]()
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