MNI BRIEF: SNB Lowers Minimum Reserve Requirement Thresholds

The Swiss National Bank said on Monday it is lowering the threshold factor for the remuneration of sight deposits of account holders subject to minimum reserve requirements from 18 to 16.5, effective as of Nov 1. 

Sight deposits up to the threshold are remunerated at the SNB policy rate, while sight deposits above the threshold are remunerated at the SNB policy rate minus a discount. Sight deposits which are held to meet minimum reserve requirements are not remunerated.

The lowering of the threshold factor reverses a move from July 2024, and is aimed at ensuring that monetary policy remains effective and supports an active money market. The adjustment of the factor has no impact on the current monetary policy stance, the SNB said, noting it regularly reviews the remuneration of sight deposits and makes adjustments if necessary. (see MNI SNB WATCH: Holds At Zero, But Inflation Outlook Unchanged )