Swiss SNB Domestic Sight Deposits Reach CHF442.60 Billion in April 25, 2025 Week
SNB cuts limit again for banks to get full interest on reserves https://t.co/h2ljSoO0iQ https://t.co/62URuU3DU7
The Swiss National Bank will lower the threshold factor for remunerating sight deposits again, making a minor adjustment to how much interest banks earn for parking cash at the institution https://t.co/eAvQFrIs3S
The Swiss franc has reached a decade high against the US dollar as investors seek a safe haven amid global trade tensions, according to chart data referenced by FT.com. This surge has fueled market speculation that the Swiss National Bank (SNB) may consider returning to negative interest rates to curb the currency's appreciation. The SNB previously maintained interest rates well below zero for eight years, aiming to prevent the franc from rising excessively, before raising them into positive territory in 2022 to address post-pandemic inflation. Recent financial data shows that Swiss total sight deposits increased to CHF 451.1 billion for the week ending April 25, up from CHF 448.3 billion previously. Domestic sight deposits also rose to CHF 442.6 billion from CHF 439.7 billion. Additionally, yields on two-year Swiss bonds have turned negative, further intensifying speculation about a potential policy shift. The SNB has responded by lowering the threshold factor for remunerating sight deposits, making a minor adjustment to the interest banks earn for parking cash at the central bank. Separately, SEB has lowered its mortgage rates.
