SNB keeps interest rates at -0,75%

The Swiss National Bank (SNB) left unchanged its monetary policy:  the 3-month Libor remains between -1.25% and -0.25% while the deposit rate is at -0,75%. "The negative interest rate and the SNB's willingness to intervene in the foreign exchange market are intended to make Swiss franc investments less attractive, thereby easing upward pressure on the currency", the SNB wrote in the note. For 2016 as a whole, the SNB now expects growth of approximately 1.5%.

The institute also reaffirms its intention to remain active on the currency market if necessary. The decision does not represent a surprise: they were expected by all experts polled by Reuters last week.

According to analysts, the fact that last Thursday the ECB left unchanged at zero rate and at -0.4% on bank deposits means that the gap with the rates in Switzerland have remained exactly the same. Hence the need for the SNB not to intervene.

Specialists believe that the situation is not likely to change soon. Yesterday periodic analysis published by the Center for European Economic Research (ZEW) in Mannheim (D) and Credit Suisse (CS) had revealed that 92% of the experts interviewed as part of a survey expect stable interest rates in the short term. In the long term the majority (53%) bet on a progression, but it is consistent also the share of those who do not see on the horizon changes (45%).

The SNB communication did not caused tremors in the exchange market: in the morning the Swiss currency appeared stable against the euro, which was trading at around 1.0960 francs. Even the dollar has not suffered bumps today: the dollar costs around 0.9760 francs.